Monthly House Price Index statistics for October 2017 published

Published: 12 December 2017

Average price of a property in Scotland up 2.8 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 October 2017 was £143,544 – an increase of 2.8 per cent on October 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 £223,807, which was an increase of 4.5 per cent compared to October in the previous year and a decrease of 0.5 per cent when compared to the previous month.

The volume of residential sales in Scotland in August 2017 was 9,282 – an increase of 7.4 per cent on August 2016 and an increase of 5.3 per cent on the previous month. This compares with annual decreases in sales volumes of 12.0 per cent in England, 3.4 per cent in Wales and 8.6 per cent in Northern Ireland (Quarter 3 - 2017).

Registers of Scotland Operations Director and Accountable Officer Janet Egdell said: “Average prices in Scotland continued their upward trend in October with an increase of 2.8 per cent when compared to October 2016. Average prices have been steadily increasing each month since March 2016, when compared with the same month of the previous year.

“Residential sales volumes increased in August. The annual increase of 7.4 per cent when compared with August 2016 in Scotland compares to decreases across the rest of the UK. The cumulative volume of sales for Scotland for the financial year to date – from April to August 2017 – was 45,341. This is an increase of 11.3 per cent on the equivalent year to date position for August 2016.”

The top five local authorities in terms of August sales volumes were the City of Edinburgh (1,190 sales), Glasgow City (1,109 sales), Fife (632 sales), South Lanarkshire (553 sales) and North Lanarkshire (448 sales).

Average price increases were recorded in 29 out of 32 local authorities in October 2017, when comparing prices with the previous year. The biggest price increases were in Dumfries and Galloway and City of Edinburgh, where the average prices increased by 10.5 per cent to £129,885 and 8.5 per cent to £247,568 respectively. The biggest decreases were recorded in Inverclyde and Aberdeen City where prices fell by 4.0 per cent for both to £94,985 and £164,655  respectively.

Across Scotland, all property types showed an increase in average price in October 2017 when compared with the same month in the previous year. Semi-detached properties showed the biggest increase, rising by 4.2 per cent to £151,131. The average price of detached properties showed the smallest increase, 0.9 per cent to £248,482.

The average price in October 2017 for a property purchased by a first time buyer was £116,042 – an increase of 3.4 per cent compared to the same month in the previous year. The average price for a property purchased by a former owner occupier was £172,056 – an increase of 2.3 per cent on the previous year.

The average price for a cash sale was £132,489 – an increase of 2.9 per cent on the previous year – while the average price for property purchased with a mortgage was £148,669 – an increase of 2.8 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. A blog post by Rhys Lewis from the Office for National Statistics has been published explaining why there are revisions to UK House Price Index data and what is being done to make provisional estimates more accurate. An accompanying article has also been published which focuses on the amendment made to the estimation model when calculating the provisional estimate in the UK HPI and the impact of this change.
  3. On Thursday 23 November 2017, the Office for Statistics Regulation (OSR) confirmed the UK HPI will be awarded National Statistics status if 8 requirements are addressed. Further information about the OCR assessment is available in a news release published by our partner HM Land Registry.
  4. We have published the Quality Assurance of Administrative Data (QAAD) documents for each of the data sources used in the UK House Price Index.
  5. In addition to the enhancements to the UK 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.
  6. 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.
  7. For further information, please telephone Jacq Kelly on 0131 528 3738, 07825 388 120 or email communications@ros.gov.uk, or contact us at: Communications, Registers of Scotland, Meadowbank House, 153 London Road, Edinburgh, EH8 7AU.
  8. 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.
  9. 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.
  10. 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.
  11. Download the data. Datasets are available as CSV files, or create your own reports using the UK HPI search tool.
  12. 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.
  13. 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.
  14. 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).
  15. 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 statistical outputs and to explain the key differences.
  16. 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 October 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 August because September and October figures may change when more recent sales applications data is received.
  4. The volume of sales in July 2017 was 8,816 (revised figure), and in August 2016 was 8,641.
  5. Cumulative volumes are based on revised HPI Scotland volumes figures (October 2017).
  6. Na h-Eileanan Siar showed an increase of 11.6%. Local authority areas where sales volumes within the year to August 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. While Inverclyde exceeded the 1 per cent, there were only 143 sales in this Local Authority area. The decrease in average price could therefore have been influenced by a number of sales at the lower end of the market.

Media contact

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