New peak for the second month in a row in Glasgow.
Two thirds of local authorities see price growth in latest figures.
However LBTT changes see higher value property sales fall by as much as half.
House prices in Scotland continued to push up in August, according to the latest Your Move/Acadata House Price data. The average house price increased by £700 – 0.4% – on the previous month to reach £169,834. It is now £4,000 above its level at the same time last year, growth of 2.4% annually.
The latest ONS transactions figures are also up, increasing 7% in May over April, with 7,131 transactions, but down 17% on the same month last year. This is due to large numbers of property purchases brought forward to March ahead of April’s introduction of an additional 3% Land and Buildings Transaction Tax (LBTT) surcharge on second homes.
Christine Campbell, Your Move Managing Director in Scotland, said:
"Glasgow setting a new peak for the second consecutive month suggests a Scottish market that’s proving remarkably resilient."
"While tax changes have seen a slowdown in transactions of high priced property in Scotland, the market overall is demonstrating broad-based growth. So far this growth seems to be holding steady in an uncertain future post-Brexit."
While high value property sales stall, cheaper areas in Scotland are growing strongly. Glasgow set a new peak price for the second month in succession in August – something that hasn’t happened since the 2007 property boom. Average prices increased 0.8% to £147,974.
The average price in the city (which is mostly flats) is now exactly £9,000 more, 6.5% up, on the same time last year.
Glasgow, though, was largely unaffected by theintroduction of LBTT rates in April 2015 of 10% on theproportion of the value of a property over £325,000 (and12% for those above £750,000). In the first six months of2016 there were only 208 such sales in Glasgow.
The impact on areas with higher value property has been substantial. In Edinburgh, there were 1,065 sales of properties over £325,000 in the first half of 2016, but this was down 17% on last year. (In fact, the fall in Glasgow was proportionally the same, but such properties represent a much smaller part of the market.)
Despite these falls in transactions for higher value property, transactions overall for the first half of 2016 are actually still marginally up, by 1%, on the same period last year.
Prices are also proving resilient across the country. Two thirds of local authority areas (21 out of 32) saw prices grow in August, led by Inverclyde (up 5.7%), Clackmannanshire (5%) and South Ayrshire and North Ayrshire (which both saw prices up 4.4%).
Despite a small fall in August (of 0.1%), prices in the capital continue to show strong annual performance. The average price in the City of Edinburgh is now £242,518, up £16,585 or 7.3% on last year. East Renfrewshire, with average prices almost as high (£241,472) as Edinburgh, has also seen strong annual growth, of 8.7%. The fastest growing areas over the past year, however, have been the Shetland Islands (up 11.7% annually), and Na h-Eileanan Siar (up 10.8%, despite a fall of 5% last month), which is also the cheapest local authority in Scotland, with an average price of £105,755.
The biggest falls have been in Aberdeen City, down 8.8% over the year, followed by Dumfries & Galloway (down 6.1%).