House price index shows 4 per cent increase annually in average prices in scotland

The latest publication of the UK House Price Index (UK HPI) shows that the average price of a property in Scotland in October 2016 was £143,131 – an increase of 4.0 per cent on the previous year and an increase of 1.0 per cent when compared to the previous month. This compares to a UK average of £216,674, which was an increase of 6.9 per cent over the year and an increase of 0.1 per cent when compared to the previous month.

Registers of Scotland director of commercial services Kenny Crawford said: “The average price of a residential property in Scotland continues to show steady growth, with month-on-month increases in every month this year apart from February and August. This is a significant change from last year when there were decreases month-on-month in six out of the 12 months.

“Average prices have been steadily increasing on a year-on-year basis, too, with only one drop in average price being recorded in the past three years. This was in March of this year.

“The volume of residential sales in Scotland in August 2016 was 8,468 – a decrease of 2.8 per cent on the previous year and down 7.0 per cent on last month. This compares with annual decreases in sales volumes of 20.3 per cent in England, 11.6 per cent in Wales and 10.7 per cent in Northern Ireland.”

The top five local authorities in terms of sales volumes were Glasgow City (1,031 sales – this is only the third time in the past 12 months that Glasgow City has overtaken the City of Edinburgh as the top local authority in terms of volumes), City of Edinburgh (1,020 sales), Fife (564 sales), South Lanarkshire (520 sales) and North Lanarkshire (415 sales).

The biggest price increase over the last year was in East Renfrewshire where the average price increased by 17.7 per cent to £222,532. The biggest decrease was again in the City of Aberdeen, where prices fell by 8.7 per cent to £172,870.

Across Scotland, all property types showed an increase in average price when compared with the previous year, with detached properties showing the biggest increase of 7.1 per cent to £251,709.

The average price for a property purchased by a former owner occupier was £172,444 – an increase of 5.2 per cent on the previous year. The average price for property purchased by a first time buyer was £114,992 – an increase of 2.6 per cent on the previous year.

The average price for a cash sale was £131,584 – an increase of 3.5 per cent on the previous year – while the average price for property purchased with a mortgage was £148,481 – an increase of 4.2 per cent on the previous year.

Notes to editors

  1. For the full picture and detail access the UK HPI and the HPI Scotland.
  2. For further information, please telephone David A Findlay on 0131 200 3949 or email communications@ros.gov.uk, or contact us at: Communications, Registers of Scotland, Meadowbank House, 153 London Road, Edinburgh, EH8 7AU.
  3. The statistics have been produced in accordance with the Code of Practice for official statistics. The UK House Price Index is calculated by the Office for National Statistics and Land & Property Services Northern Ireland. Find out about the methodology used.
  4. Data for the UK House Price Index is provided by Land Registry, Registers of Scotland, Land & Property Services Northern Ireland and the Valuation Office Agency.
  5. Download the data. Datasets are available as CSV files, or create your own reports using the UK HPI search tool.
  6. The new UK HPI has been published initially as an experimental official statistic to allow for users to acclimatise to the format of the new HPI, to evaluate user reaction to the new data, evolve the publication of data further to meet user requirements and to further develop the data sources used in the production. Whilst the methodology for the new UK HPI has been finalised, further work is taking place to secure additional property attributes data (such as from Scottish Assessors) that will supplement and provide additional assurance to the production process going forward.

    It is expected that we will seek to take the necessary steps to remove the experimental status at the end of 2016, once the above points have been implemented and then progress with the assessment of the new UK HPI as a National Statistic.

    Please note that the Northern Ireland Residential Property Price Index, used as a component source in the production of the new UK HPI remains an official statistic (i.e. this is not classified as experimental).

  7. RoS began compiling quarterly statistics on the housing market with the completion of the extension of the Land Register to all counties in Scotland in April 2003. The differences in methodology between our quarterly statistics and the HPI are highlighted here. Charts are also available on our website to allow comparison between the two publications and to explain the key differences.
  8. Registers of Scotland (RoS) is the government department responsible for compiling and maintaining registers relating to property and other legal documents in Scotland. RoS records and safeguards the rights of the individual while providing open access to information on the registers.
  9. Since 1 April 2015, RoS has supported Revenue Scotland in the enforcement and collection of land and buildings transaction tax.
  10. Follow us on Twitter @RegistersOfScot, Facebook and LinkedIn. Sign up for our customer newsletter.

Footnotes

  1. This publication covers statistics up to October 2016.
  2. Note that all average prices reported from the UK HPI are geometric means, which will typically be closer to the median than the arithmetic mean. Also note that average price estimates for the most recent months are provisional figures and are likely to change when more recent data is incorporated into the index. Revision policies can be accessed here.
  3. Due to a period of 2 to 8 weeks between completion and registration of sales, volume figures based on the month of date of entry are presented up to August because September and October figures may change when more recent sales applications data is received.
  4. Local authority areas where sales volumes represent less than 1 per cent of the all Scotland sales volume are excluded from the figures used for highlighting purposes due to the volatility of the market in these areas. While East Renfrewshire exceeded the 1 per cent, there were only 183 sales in this Local Authority area. The increase in average price could therefore have been influenced by a number of sales at the higher end of the market.