The latest figures from the Office for National Statistics (ONS) show that the average Scottish house price has jumped during the course of the pandemic by 8.4% and the number of house sales rose by 31.9%.
Over the past four years we have seen a general slowdown in house price growth across the UK but while this was driven mainly by the south east of England, house price growth in Scotland has remained steady. At the start of 2020, before the pandemic hit, annual growth in the housing market picked up.
During April and May 2020 people were advised not to move home unless the process was well underway and house sales were due to complete. Since the lockdown was lifted and the housing market remained open even during the most recent lockdowns, pent up demand and changes in people’s priorities and lifestyle has caused a surge in house sales, increasing competition among buyers and pushing up prices especially for larger properties with outside space. Add to this the stamp duty (LBTT) holiday and low borrowing costs and the result has been an unprecedented housing boom.
In terms of house types, detached homes saw the biggest price increase of 9.9% to an average of £285,415, while flats and maisonettes saw a smaller rise at 7.3% to reach an average of £115,600. The average house sale in Scotland last year was £162,983.
Across the UK, house prices climbed 8.5% in 2020. This is the highest annual growth rate since October 2014.
Regional differences
In 2020, the most expensive place to purchase property in Scotland was Edinburgh which saw a subdued price increase of 5.3% and an average selling price of £236,000. The lowest average price was Inverclyde at £108,000.
The largest increases were seen in Ayrshire across all three councils with a rise of 17.9%.
In Renfrewshire, East Renfrewshire, Borders and Stirling there were increases of more than 10%.
Aberdeen house prices continued to fall, and were down 2.1%, which may reflect turmoil and job losses in the oil and gas sector last year. Shetland saw the largest average price rise in Scotland at 19.9%.
Transactions were high in Scotland last year with a 31.9% rise which could be attributed to the temporary reduction in the Land and Buildings Transactions Tax and high demand.
Clyde Property is a leading independent, multiple award-winning estate and letting agent with more than 30 years’ experience in selling and letting property in Scotland. Just call your local Clyde Property branch today for friendly, impartial advice on finding your next dream home.
