Scottish property booms with 2.6% annual rise

The average property in Scotland is worth 2.6% more than it was a year ago, research by estate agent Your Move shows.

Your  Move’s research found that prices in Scotland had risen by 2.6% between May 2014 and June 2015, meaning the average property saw an increase in value of £4,300.

Total sales hit 9,265 in the month, the highest number recorded since July 2014. Strong sales figures in Glasgow helped boost this total, where activity was 18% higher than a year ago.

Compared to June 2014, house prices in Scotland have risen by 1.2%. Both Glasgow and Edinburgh saw the number of flats sold increase, these two cities now account for 45% of all Scottish flat sales.

Christine Campbell, Your Move managing director in Scotland, said: “The Scottish housing market has been buffeted around by the changing tide of taxation, but is now back in smoother waters.

“Average property prices surged 2.6% in June, lifting them safely to £169,227 – level with last December – after bobbing around on many ebbs and flows over the last few months.”

She added: “Affordability is the biggest steer to Scottish housing market at the moment. At £200,000, the average price of a flat in Edinburgh is more than one and half times as much as the cost of the typical flat in Glasgow (which stands at £120,000).

“As a result, Glasgow has experienced the strongest jump in house purchases overall, with Q2 sales up 18% on 2014, while Edinburgh sales have seen just a 2% upswing over the same period.

“Low interest rates, competitive mortgage deals, and higher average earnings have caused a swell of confidence and buyer demand – particularly in cheaper areas – but a drought of supply will keep the floodgates open to stronger price surges, and along with a future base rate rise, this could wash away options for aspiring buyers.”

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