Average price of a property in Scotland up 4.8 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 July 2017 was £149,185 – an increase of 4.8 per cent on July in the previous year and an increase of 2.8 per cent when compared to the previous month. This compares to a UK average of £226,185, which was an increase of 5.1 per cent compared to July in the previous year and an increase of 1.1 per cent when compared to the previous month.
The volume of residential sales in Scotland in May 2017 was 8,241 – an increase of 13.7 per cent on May 2016 and an increase of 3.5 per cent on the previous month. This compares with an annual decrease in sales volumes of 3.3 per cent in England and annual increases in sales volumes of 9.0 per cent in Wales and 5.0 per cent in Northern Ireland (Quarter 2 - 2017).
Registers of Scotland business development and information director Kenny Crawford said: “Average prices in Scotland continued their upward trend in July with an increase of 4.8 per cent when compared to July 2016. This represents the biggest percentage increase year-on-year since March 2015.
“While average prices have been steadily increasing each month since March 2016, when compared with the same month of the previous year, sales volumes figures have been more changeable over the 12 months to May. May 2017 showed an increase in sales volumes in Scotland of 13.7% when compared with May 2016; however, volumes in May 2016 were lower than usual, a possible effect of the introduction of changes to the Land and Buildings Transaction Tax that came into effect on 1 April 2016.”
The top five local authorities in terms of sales volumes were the City of Edinburgh (1,094 sales), Glasgow City (899 sales), Fife (565 sales), South Lanarkshire (506 sales) and North Lanarkshire (396 sales).
Average price increases were recorded in 30 out of 32 local authorities in July 2017, when comparing prices with the previous year. The biggest price increase was in the City of Edinburgh, where the average price increased by 9.6 per cent to £243,920. The biggest decrease was again in Aberdeen City, where prices fell by 7.7 per cent to £166,836.
Across Scotland, all property types showed an increase in average price in July 2017 when compared with the same month in the previous year. Detached properties showed the biggest increase, rising by 5.6 per cent to £255,993.
The average price in July 2017 for property purchased by a first time buyer was £120,630 – an increase of 4.1 per cent compared to the same month in the previous year. The average price for a property purchased by a former owner occupier was £178,766 – an increase of 5.5 per cent on the previous year.
Notes to editors
- 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.
- Please note that an error has been identified with the cash and mortgage weights for Scotland for the year 2017, which is likely to affect the index values and average prices presented for these figures. Reference to the cash and mortgage figures have therefore been omitted from this release. Revised and corrected figures based on a correct set of weights will be provided in the next set of results. Note that this issue only affects the cash and mortgage figures for Scotland, and all other figures are unaffected.
- 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.
- 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.
- 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.
- 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.
- 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.
- Download the data. Datasets are available as CSV files, or create your own reports using the UK HPI search tool.
- 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. 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 summer 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).
- 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.
- 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.
- This publication covers statistics up to July 2017.↵
- 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.↵
- 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 May because June and July figures may change when more recent sales applications data is received.↵
- The volume of sales in April 2017 was 7,964 (revised figure), and in May 2016 was 7,248.↵
- Average prices increased by 10.4% to £138,792 in March 2015.↵
- Orkney Islands showed an increase of 14.2% Local authority areas where sales volumes within the year to May 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.↵