House price growth quickens after tempestuous year
- House prices accelerate 1.4% annually, more than double 0.6% annual growth seen in the previous month
- Property values advance 0.5% (£850) in a month, with the average home now costing £167,505
- But growth is yet to hit a third of the speed seen in September last year, when annual growth was 5.4%
- Volumes outpace prices, as sales in September are the highest for eight years, up 10% on a year ago
Christine Campbell, Your Move managing director in Scotland, comments: “House prices have taken off after a turbulent summer. Annually, house prices have increased by 1.4% (£2,282) compared to September last year, more than double August’s annual growth rate (0.6%), as momentum builds in Scotland’s property market again.
“Usually there is a decline in house purchase activity between August and September, as a lagged effect of the summer holidays. However, this month’s figures go against this trend. Despite other headwinds, this could be down to Scotland’s rising employment rate, increasing by 3,000 in the three months to September to 2,614,000 according to the ONS. With interest rates unlikely to change until 2017, low borrowing costs and near zero inflation should also help to pull up prices in the future.