Scotland's house prices rise by 4% annually
- 4% increase represents the largest annual growth rate since May 2015
- Monthly, property prices flattened slightly in the run up to the Brexit vote
- Latest transactions figures from March highlight highest volume since 2007
For the first time since February, Scottish house prices saw a month on month decline in June. However, taking into account the annual trends, prices were up 4% on the same period in 2015.
While June saw the historic EU referendum vote take place, we’re still waiting for greater clarity on the short term effects this will have on the Scottish housing market. Official data released currently covers the period up to the end of June, so only in the coming months will we be able to see the impact a vote to Brexit will have on both property prices and
transaction levels. What we can see is that the underlying fundamentals of the market remain strong. We’re benefitting from record low mortgage rates, high employment levels, and high demand for property.
While monthly house prices were down compared to May, the average price of property was £170,404 in June, still 0.97% higher compared to the start of the year. Following April’s introduction of the 3% tax increase on second homes, house prices and transaction figures remain arguably skewed in the second quarter of this year, as buyers pushed to complete before the surcharge came into effect.
Source: Your Move/ Acadata Scotland House Price Index, June 2016