Annual average Scottish house price growth hit a four-year high in June but remains at just a third of the pre-crisis rate, according to LSL Property Services and Acadata’s Scottish house price index.
Scottish house prices have risen by 5.7 per cent per cent in the last year, outpacing most other areas of the UK, although the data show activity and price growth is still being driven primarily by Edinburgh and Glasgow.
Home sales were up 15 per cent in June, getting back on course after a spring lull, but average prices are still 0.9 per cent off the pre-crisis peak and half of Scotland saw prices drop in June.
Gordon Fowlis, regional managing director of Your Move, an estate agency chain that is part of LSL, said that the average property price increase by £8,890 in the last twelve months is the biggest rise since September 2010.
He said: “The housing market may have been temporarily subdued in the immediate clamour surrounding the MMR regulatory changes, but activity is again apparent, and sales rose 15 per cent in June, up 26 per cent on the previous year.
Mr Fowlis admitted that the tale of two cities is really leading the narrative, however. “A quarter of all house sales across Scotland in June were in Glasgow and Edinburgh, pushing average property prices in these cities up 4.5 per cent and 4.2 per cent respectively over the course of the month.”
While the Scottish housing market may appear sturdy, Mr Fowlis warned that annual growth is still only a third of the 16 per cent pace recorded in August 2007 before the financial crisis.
“It may be on the track, but the housing recovery still requires careful steering to navigate upcoming obstacles and to ensure that the benefits are felt equally across the country.”
