Highlights from the December House Price Index:
- Scotland’s average house price exceeds £200,000
- Average house prices reach record levels in 22 local authority areas
- Transactions in October and November at their highest levels for last six years
- Annual price growth at 8.5% – highest since March 2015
Note: The Walker Fraser Steele House Price Index (Scotland) was formerly the Your Move Acadata House Price Index. Content and methodology are unchanged. Please refer to the Notes at the end of the report for more information.
Alan Penman, business development manager at Walker Fraser Steele,
“The Scottish housing market passed a notable milestone at the end of 2020, as the average property price rose above £200,000 for the first time ever. This new record follows a year of extraordinary growth in the Scottish market – the average price increased by over 8% during the last year and 11% over the last two years.
“The increase in the threshold for the Land and Buildings Transaction Tax (LBTT) played a key role in stimulating the market over 2020. Indeed, the average number of monthly property transactions in 2020 doubled since the measure was introduced in July, though the easing of Coronavirus restrictions may also have played an important part in the increase in activity.
“It’s also worth noting that the economic effects of Coronavirus have not been felt equally and while many Scottish households have struggled financially, some have been able to use the pandemic to bolster their savings. Working from home while cutting out the costs of commuting and socialising has provided an unexpected opportunity for some to save towards a deposit for a property.
“These buyers have also benefited from very low interest rates, which have encouraged many to enter the property market, while also disincentivising saving. The result of this cumulative stimulus has been a record-breaking year for the Scottish property market.”
Summary of regional house price changes:
Note: The monthly Walker Fraser Steele House Price Index reports on transaction numbers and the movement of average house prices in Scotland, including regional data. The Index uses:
- The actual prices at which every residential property in Scotland was transacted, including prices for properties bought with cash, using the data provided by Registers of Scotland as opposed to valuation estimates or asking prices
- The price of every single relevant transaction, as opposed to prices based upon samples.