Monthly House Price Index statistics for August 2017 published

Published: 16 October 2017

Average price of a property in Scotland up 3.9 per cent on previous year.

The latest publication of the monthly UK House Price Index (UK HPI) shows that the average price of a property in Scotland in August 2017 was £146,354 – an increase of 3.9 per cent on August in the previous year and a decrease of 0.7 per cent when compared to the previous month. This compares to a UK average of £225,956, which was an increase of 5.0 per cent compared to August in the previous year and an increase of 0.5 per cent when compared to the previous month.

The volume of residential sales in Scotland in June 2017 was 10,473 – an increase of 19.3 per cent on June 2016 and an increase of 26.2 per cent on the previous month. This compares with an annual decrease in sales volumes of 11.0 per cent in England and annual increases in sales volumes of 1.4 per cent in Wales and 5.0 per cent in Northern Ireland (Quarter 2 - 2017).

Registers of Scotland registration and transformation director Charles Keegan said: “Residential sales volumes have taken a boost in June, with volumes hitting a five figure total for the first time since March 2016. The volume in June 2017 was 10,473, while the volume of sales recorded in March 2016 was 11,017. However, the 2016 figure is likely to have been enhanced by house buyers seeking to finalise purchases prior to the introduction of changes to the Land and Buildings Transaction Tax that came into effect on 1 April 2016. Sales volumes in Scotland also continued to perform well in comparison to the other countries of the UK.

“Average prices in Scotland also continued their upward trend in August with an increase of 3.9 per cent when compared to August 2016. Average prices have been steadily increasing each month since March 2016, when compared with the same month of the previous year.”

The top five local authorities in terms of sales volumes were Glasgow City (1,224 sales), the City of Edinburgh (1,216 sales), Fife (704 sales), South Lanarkshire (674 sales) and North Lanarkshire (561 sales).

Average price increases were recorded in 28 out of 32 local authorities in August 2017, when comparing prices with the previous year. The biggest price increase was in the City of Edinburgh, where the average price increased by 10.4 per cent to £246,611. The biggest decreases were in Aberdeenshire and Aberdeen City, where prices fell by 5.7 per cent to £188,876 and by 4.8 per cent to £167,903 respectively.

Across Scotland, all property types, with the exception of detached properties, showed an increase in average price in August 2017 when compared with the same month in the previous year. Flatted properties showed the biggest increase, rising by 8.4 per cent to £108,772. The average price of detached properties decreased by 1.9 per cent to £240,241.

The average price in August 2017 for a property purchased by a first time buyer was £120,824 – an increase of 6.2 per cent compared to the same month in the previous year. The average price for a property purchased by a former owner occupier was £171,611 – an increase of 1.5 per cent on the previous year.

The average price for a cash sale was £135,802 – an increase of 4.7 per cent on the previous year – while the average price for property purchased with a mortgage was £151,197 – an increase of 3.5 per cent on the previous year.

Notes to editors

  1. For the full picture and detail access the UK HPI and the HPI Scotland. As with other indicators in the Housing Market, which typically fluctuate from month to month, it is important not to put too much weight on one month’s set of house price data.
  2. Last month, an error was identified with the cash and mortgage weights for Scotland for the year 2017. This error has now been rectified and revised figures, based on a correct set of weights, have been provided in the data downloads files. Note that this issue only affected the cash and mortgage figures for Scotland, and all other figures were unaffected.
  3. In addition to the enhancements to the HPI that were summarised in the anniversary news release, a comparison guide has been produced that compares the source data, index and methods of the different house price index measures that are published in the UK. This guide highlights the strengths and limitations of each measure to aid users in choosing the most appropriate index for their requirements.
  4. Registers of Scotland also published our 10-year property market report in June, detailing trends in the land and property market over the last ten years.
  5. 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.
  6. Data for the UK House Price Index is provided by HM Land Registry, Registers of Scotland, Land & Property Services Northern Ireland and the Valuation Office Agency.
  7. Separate HPI releases are also published by HM Land Registry and Land & Property Services Northern Ireland, which focus on the figures for England and Wales and for Northern Ireland. The Office for National Statistics also publishes a monthly HPI statistical bulletin with commentary on the whole of the UK.
  8. Download the data. Datasets are available as CSV files, or create your own reports using the UK HPI search tool.
  9. The new UK HPI was launched in June 2016 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.
  10. Further information about this experimental status and the improvements introduced to the UK HPI since its launch can be found in section 1.1 of About the UK House Price Index. Following the introduction of further improvements, scheduled to be implemented in 2017, the HPI working group will look to remove the experimental status and progress with the assessment of the UK House Price Index 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).

  11. 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. View differences in methodology between our quarterly statistics and the HPI. Charts are also available on our website to allow comparison between the two statistical outputs and to explain the key differences.
  12. 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.

Footnotes

  1. This publication covers statistics up to August 2017.
  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. The volume of sales in May 2017 was 8,301 (revised figure), and in June 2016 was 8,782.
  5. Shetland Islands showed an increase of 13.7% Local authority areas where sales volumes within the year to June 2017 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.

Media contact

Jacq Kelly
Press and public affairs manager
jacqueline.kelly@ros.gov.uk
07825 388 120