House price index shows 4.0 per cent increase 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 May 2016 was £141,142, an increase of 4.0 per cent on the previous year and an increase of 2.8 per cent when compared to the previous month. This compares to a UK average of £211,230, which was an increase of 8.1% over the year, and an increase of 1.1 per cent when compared to the previous month.
RoS’ director of commercial services, Kenny Crawford, said: “The new UK HPI Scotland has been well received by our users so far. There have been queries about the differences in published average house prices when comparing the HPI with the Registers of Scotland quarterly statistics. These differences were expected and reflect the different methodologies used in these publications. We have published charts on our website to allow comparison between the two publications and to explain the key differences.”
The volume of residential sales in Scotland in March 2016 was 11,017, an increase of 45.4 per cent on the previous year. Changes in Land and Buildings Transaction Tax that came into effect on 1 April 2016 for additional dwellings, such as second homes and buy-to-let properties, are likely to have contributed to this increase. The City of Glasgow showed the biggest volume of sales in March with 1,579 sales.
The biggest price increase over the last year was in East Renfrewshire where the average price increased by 7.0 per cent to £201,282. The biggest decrease was in the City of Aberdeen, where prices fell by 9.2 per cent to £176,394.
The average price for a new build property in May 2016 was £200,554, an increase of 12.2 per cent on the previous year, while the average price for an existing resold property was £138,700, an increase of 3.6 per cent on the previous year.
The average price for a property purchased by a former owner occupier was £167,494, an increase of 4.1 per cent on the previous year. The average price for property purchased by a first time buyer was £115,428, an increase of 4.0 per cent on the previous year.
The average price for a cash sale was £130,169, an increase of 4.0 per cent on the previous year, while the average price for property purchased with a mortgage was £146,214, an increase of 4.1 per cent on the previous year.
Communications, Registers of Scotland, Meadowbank House, 153 London Road, Edinburgh, EH8 7AU
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Notes to editors
2. 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. 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).
5. 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.
6. 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.
7. Since 1 April 2015, RoS has supported Revenue Scotland in the enforcement and collection of land and buildings transaction tax.
- This publication covers statistics up to May 2016.↵
- 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.↵
- 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 March because April and May figures may change when more recent sales applications data is received.↵
- Na h-Eileanan Siar showed an increase of 22.1 per cent over the year and Shetland Islands showed an increase of 21.6 per cent. 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.↵
- The initial estimate for new builds is based on a small sample which can cause volatility in this initial estimate.↵