Scotland beats rest of UK with 2.8% growth in house prices
SCOTLAND was the strongest performer in terms of house price growth in 2019, figures show.
Prices north of the Border were up by 2.8 per cent in the fourth quarter compared with a year earlier.
It marked the first time since 2008 that Scotland ended the year as the top performer, said the Nationwide Building Society.
The average price in Scotland in the fourth quarter of last year was £151,952.
Overall, UK house prices ended 2019 1.4% higher than when the year started.
Across the UK, the average house price in December was £215,282 – marking a 1.4% annual increase.
It was the strongest annual increase seen in just over a year – since November 2018 when there was 1.9% growth.
Economists said Nationwide’s latest figures indicate the housing market is “getting back on its feet”.
Property values edged up by 0.1% month-on-month.
Robert Gardner, Nationwide’s chief economist, said: “Annual UK house price growth edged up as 2019 drew to a close, with prices 1.4% higher than December 2018, the first time it has been above 1% for 12 months.
“Indicators of UK economic activity were fairly volatile for much of 2019, but the underlying pace of growth appeared to slow through the year as a result of weaker global growth and an intensification of Brexit uncertainty.”
London was the weakest performer, with an annual house price decline of 1.8% in the fourth quarter of 2019.
Mr Gardner added: “Looking ahead, economic developments will remain the key driver of housing market trends and house prices.
“Much will continue to depend on how quickly uncertainty about the UK’S future trading relationships lifts as well as the outlook for global growth.
“Overall, we expect the economy to continue to expand at a modest pace in 2020, with house prices remaining broadly flat over the next 12 months.”
Looking at the challenge buyers face in raising a deposit to get on the property ladder, Mr Gardner said: “Even in the North and Scotland, where property appears most affordable, it would still take someone earning the average wage and saving 15% of their take-home pay each month more than five years to save a 20% deposit.
“In Wales and Northern Ireland, it would take prospective buyers nearly seven years, and almost eight years for people in the West Midlands.