Scotland lags as UK house prices rocket

HOUSE prices in Scotland are rising at half the rate of the UK figure, sparking claims that uncertainty over independence is damaging the property market.

Figures published yesterday showed the average price of a property in Scotland was £144,561 in August, 4.3 per cent higher than in August 2015.

But prices rose by 8.4 per cent across the whole of the UK, to £218,964.

The number of house sales slumped for the third month in a row following the SNP’s introduction of a second homes tax in April.

Yesterday’s Registers of Scotland data is the latest in a series of indicators to show Scotland’s economy is slower than the UK’s. Critics blamed the SNP.

Scottish Tory economy spokesman Dean Lockhart said: ‘There are two things happening in Scotland not replicated across the rest of the UK that must be impacting this.

‘One is the country is being run by an anti-business SNP; secondly, the uncertainty being caused by the threat of another independence referendum.

‘This lies at the Nationalists’ door. Yet again, the Scottish Government must explain why performance across a range of sectors has been so sluggish on its watch.’

The biggest average price increase over the past year was in East Renfrewshire, by 12.7 per cent to £219,511.

The biggest average decrease was in Aberdeen, where prices fell by 8.7 per cent to £175,922 – due to the steep decline in the North Sea oil and gas sector.

All property types showed an increase in average price, with semis showing the biggest rise, of 5.6 per cent to £151,917.

The figures also included data on the number of sales of houses

‘Uncertainty being caused’

in Scotland. The volume of residential sales decreased by 7.4 per cent in June compared to a year ago, to 8,620.

It was the third month in a row that sales had declined.

Registers of Scotland blamed the new ‘additional dwellings supplement’ for the decline. The tax, introduced by the SNP in April, forces buyers of holiday homes, buy-to-let properties and any other second homes to pay an extra 3 per cent tax upfront – in addition to any other Land and Buildings Transaction Tax (LBTT) due. It has added thousands of pounds to the tax bill of many buyers.

Registers of Scotland commercial services director Kenny Crawford said: ‘We still may be seeing some impact from changes in LBTT for additional dwellings, such as second homes and buy-to-let properties.

‘These changes are likely to have contributed to the significant increase in volumes seen in March and to the subsequent lower volumes that have followed in April, May and June.’

Housing Minister Kevin Stewart said: ‘We welcome the longerterm trend which shows Scottish house prices continue to be more affordable and are rising more slowly than housing in the rest of the UK.

‘This Government is committed to increasing the housing supply and delivering at least 50,000 affordable homes, backed by over £3billion investment during this parliament.

‘We have set LBTT rates to prioritise support for first-time buyers and those buying properties at the lower end of the market. I am also pleased to see that mortgages for first-time buyers in Scotland rose by over 10 per cent.’