House prices rose by an almost record amount during the past year, with the average increase across Scotland in double figures.
Statistics from the UK’s House price Index (HPI) show that the value of the average property in Scotland grew by 11 per cent to stand at £182,755 in November, an increase of 11.4 per cent on the preceding 12 months.
On a month-to-month basis, house prices increased by 1% between October and November 2021 across Scotland.
However, some areas have recorded bigger growth than others. Over the past year, the average sale price of property in Glasgow rose by £14,000 – putting the area 24th among Scotland’s 32 local authorities with price data for annual growth.
The highest annual growth in Scotland was in Argyll and Bute, where property prices increased on average by 18.6%, to £182,000.
At the other end of the scale, properties in Na h-Eileanan Siar, the Western Isles, gained just 0.4% in value, giving an average price of £132,000.
The smallest increase on the mainland was in Angus, where the average price increased by 6.4 per cent to £163,778.
Experts warned that, with general living costs such as energy bills also rocketing, it is imperative that buyers do not overstretch themselves when chasing their “dream home”.
Jamie Durham, an economist at PwC UK, said: “Going into 2022, the most significant risk to the (housing market) outlook is the ongoing pressure on the cost of living…
“This may impact consumer confidence, and limit willingness to make major financial decisions like buying a home.”
Emma Cox, sales director at Shawbrook Bank, said: “The harsh reality is that this extended period of ground-breaking house prices will provide challenges for the market as we move further into 2022.
“With inflation reaching 5% this year and the cost of living rising, it’s imperative that buyers don’t overstretch themselves in pursuit of their dream home.
“A mortgage is likely to be the most significant amount of debt an individual takes on.”
The UK average house price was £270,708, which was an increase of 10.1 per cent on November 2020 and an increase of 1.2 per cent on the previous month.
The volume of residential sales in Scotland in September 2021 was 9,250, a decrease of 9.0 per cent on the original provisional estimate for September 2020.
This compares with decreases of 23.4 per cent in England and 36.9 per cent in Wales to September 2021, whilst sales volumes increased 62.6 per cent in Northern Ireland analysing Quarter 3 – 2021 relative to the same quarter in the previous year.
Registers of Scotland Business Development Director Kenny Crawford said: “The average price of a property in Scotland in September, at £182,755, remains one of the highest reported for any month since January 2004, from when Scottish data for the UK HPI was first available.
“Over the year as a whole from October 2020 to the end of September 2021, the number of transactions has picked up following the reductions caused by COVID-19 measures and cumulatively is now 51 per cent higher than the previous year. Figures in the current year to date are also 18 per cent higher than pre-COVID figures from September 2018 to September 2019.”
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