House Price Index

August 2016 - An Indian Summer for Scotland

Fast Facts

  • 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.

Headline News

  • 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.

Quick Quotes

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."

Key insights

  • 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%).

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