‘Race for space’ drives average house price to £211k

SCOTLAND’S property prices have been driven to a record high by soaring demand for larger houses.

Market analysts say that, overall, the cost of the average Scottish home has now risen to £211,029.

It follows a boom in properties selling for £750,000-plus in a ‘race for space’ to work from home.

In addition, up to August, 648 homes north of the Border had sold this year for more than a quarter of a million pounds.

According to property firm Walker Fraser

Steele, this eight-month total was equal to all sales of this value in the whole of last year, itself a record-breaker.

each of Scotland’s 32 local authorities saw house price increases, with Borders recording a 12-month rise of 28.4 per cent.

Alan Penman, business development manager at Walker Fraser Steele, said: ‘At the end of July, the average Scottish house price stood at £207,344 but, by the end of August, this figure was £211,029 – reaching a new record high, with a rise of £3,685, or just under 2 per cent, in the month. The race for space continues to support the prices of larger properties.

‘The scarcity of this type of stock, coupled with the continued high demand, means prices remain strong.’

Different organisations use their own calculations for recording ‘average’ house prices. earlier this month Halifax said the average Scottish house price was £188,525. The latest estimate from Registers of Scotland was £171,134.

Mr Penman added: ‘People’s preference for more space and working from home has meant buyers have often sought properties that can accommodate new lifestyles.’

In total, 16 council areas recorded a new high in the average price of homes, including east Renfrewshire, where it rose from £249,741 last year to £298,443 this year.

For several years, the market in Aberdeen has been badly hit by a downturn in the oil and gas industries. But a rebound in energy prices appears to have helped a recovery.

All property types in the city saw rises in the average price in August, with the largest for flats, up from an average of £115,000 in July to £121,000 in August.