House price index shows 4.3 per cent increase in average prices in Scotland

Published: 28 September 2016

The latest publication of the UK House Price Index (UK HPI) shows that the average price of a property in Scotland in August 2016 was £144,561 – an increase of 4.3 per cent on the previous year and an increase of 1.3 per cent when compared to the previous month. This compares to a UK average of £218,964, which was an increase of 8.4 per cent over the year and an increase of 1.3 per cent when compared to the previous month.

Registers of Scotland’s director of commercial services, Kenny Crawford, said: “The volume of residential sales in Scotland in June 2016 was 8,620 – a decrease of 7.4 per cent on the previous year, but up 20.9 per cent on last month.

“We still may be seeing some impact from 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. These changes are likely to have contributed to the significant increase in volumes seen in March and to the subsequent lower volumes that have followed in April, May and June.”

The top five local authorities in terms of sales volumes were the City of Edinburgh (1,053 sales), Glasgow City (1,003 sales), South Lanarkshire (568 sales) Fife (515 sales), and North Lanarkshire (448 sales).

The biggest price increase over the last year was in East Renfrewshire where the average price increased by 12.7 per cent to £219,511. The biggest decrease was again in the City of Aberdeen, where prices fell by 8.7 per cent to £175,922.

Mr Crawford added: “In the five months since the House Price Index was first published in June 2016, the City of Aberdeen has shown each month the biggest annual percentage decrease in average price of all of Scotland’s local authority areas. The average price in the City of Aberdeen in August was £175,922, compared to £192,744 in August last year.

“Overall, average prices in the area have fallen consistently over the last 15 months when comparing monthly average price figures with the figures for the same month in the previous year.”

Across Scotland, all property types showed an increase in average price when compared with the previous year, with semi-detached properties showing the biggest increase of 5.6 per cent to £151,917.

The average price for a property purchased by a former owner occupier was £173,859 – an increase of 4.7 per cent on the previous year. The average price for property purchased by a first time buyer was £116,383 – an increase of 3.9 per cent on the previous year.

The average price for a cash sale was £132,784 – an increase of 3.8 per cent on the previous year, while the average price for property purchased with a mortgage was £150,020 – an increase of 4.6 per cent on the previous year.

ENDS

Notes to editors

  1. For the full picture and detail access the UK HPI and the HPI Scotland.
  2. For further information, please contact Jacq Kelly on 0131 528 3738 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.

Footnotes

  1. This publication covers statistics up to August 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 June because July and August figures may change when more recent sales applications data is received.
  4. Shetland Islands showed an increase of 20.8 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. While East Renfrewshire exceeded the 1 per cent, there were only 155 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.