Edinburgh fuels boom in house prices as Scotland outstrips UK
HOUSE price rises in Scotland are outstripping the rest of the UK with the surge being driven by a boom in the value of property in Edinburgh.
New analysis of the housing market has found that the average cost of a home jumped by almost eight per cent north of the Border compared to just 1% down south. The burgeoning property market means that the average house price is now £184,850, an increase of more than £13,000 in the last 12 months from £171,614 last March.
House price growth is now at its highest level since March 2008 and the start of the economic downturn.
The data has been revealed by the latest Your Move/acadata House Price Index, and shows the housing market has now recovered to a level last seen before the introduction of the Scottish Government’s Land and Buildings Transaction Tax (LBTT), which replaced stamp duty.
Christine Campbell, Your Move managing director in Scotland, said: “The Scottish market goes from strength to strength, with Edinburgh driving growth, but excellent performance is found across the country.
“With property in Scotland still very affordable, it is possible this will continue, too.”
House prices in Edinburgh saw a doubledigit surge during the past 12 months, rising 14.5% to an average of £288,039 at the end of March.
This is in contrast to London, where prices fell by 2.5% during the same period.
At the top of the market, 62 properties priced at £750,000 or more changed hands in Edinburgh during the first three months of the year, more than double the number last year (24).
John Tindale, senior housing analyst for Acadata, said wealthy house-buyers were returning to the capital after being scared off by the impact of LBTT, which increased the amount due on properties at the higher end of the price scale.
He said: “A recent Royal Mail survey concluded that “Edinburgh is the UK’S most attractive city to live and work in”. The high level of LBTT payable on properties priced in excess of £750,000 no longer appears to be a strong deterrent to potential purchasers in the Edinburgh area, with the sale of such properties very much on the increase.
“It will be interesting to see if this positivity in the upper echelons of the Edinburgh market is going to have a ripple effect outward to the remainder of Scotland’s housing sector over the next few months.”
Overall, 26 out of 32 local authorities in the country recorded growth in the last year with 10 setting new peak average prices in March.
They include several which saw doubledigit growth similar to that found in Edinburgh, including Falkirk, which leads the way with annual price growth of 15.4%, and East Renfrewshire, the most expensive area outside Edinburgh where prices grew almost as fast at 13.4%.
Midlothian (10.4%) and the Scottish Borders (12%), also saw above average prices as did West Lothian (12.4%) and Fife (11.6%).
House prices increased in Glasgow by