Residential property sales in Scottish Island Regions

Scottish Islands House Price Report by Registers of Scotland

Registers of Scotland have published a report using data from the land register to explore trends in house prices across the Scottish island regions. This overview compares prices with urban and rural areas across Scotland.

It shows that median prices across the island regions have increased by 30% from £140,000 in 2018 to £182,000 in 2023. This compares with an increase of 23% over the same period in mainland Scotland, from £151,000 to £185,000.

Key figures:

• The Registers of Scotland (RoS) data shows that the median price of properties in the island regions as a whole was slightly lower than the median for Scotland, with £182,000 across the island regions in 2023 compared to £185,000 for all Scotland
• There were significant differences in prices between different island regions, ranging from a median of £135,000 in Shetland Outer Islands to Highland Islands at £249,000 in 2023
• Across mainland Scotland 63% of residential sales were funded with a mortgage in 2023 and 37% were cash sales. In the Scottish Island regions, the percentage of cash sales is higher, with 57% cash sales and 43% with a mortgage.

The full report can be read here.

Commenting on the release, Housing Minister Paul McLennan said:

“Good quality housing is essential to attract and retain people in island communities. Since April 2016 the Scottish Government has supported the delivery of more than 1,100 affordable homes on islands across Scotland and our commitment to deliver 110,000 affordable homes by 2032 – at least 10% of which will be in our rural and island communities – continues to be supported by our Rural and Islands Housing Action Plan.

The Rural Affordable Homes for Key Workers Fund and Rural and Islands Housing Fund are key elements of our approach to addressing specific rural and islands housing issues where they arise. We have also delivered secondary legislation enabling local authorities to make decisions about the council tax treatment of second homes to determine the balance in the use of housing to meet local needs. I have encouraged councils to fully consider the role that second homes have in their communities and to use these additional powers where required.”

Also commenting, Jennifer Henderson, Keeper of the Registers of Scotland, said:

“This new report brings valuable insight to property prices across the Scottish island regions. It demonstrates Registers of Scotland’s commitment to providing innovative and accessible land and property data that is valuable to the people, businesses, and policymakers of Scotland.”

Notes to editors

1. 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.
2. The Scottish Government has developed Scottish Island Regions – a new geography for grouping Scotland’s islands into nine different island regions.
3. The property statistics are compiled using data collected as part of the land registration process. This data is comprehensive, covering transactions for all types of residential property sales, and with actual sale prices, not just valuations. Full information on the methodology used to compile these statistics can be found on our website.
4. Further information about the quality processes in place for RoS data is available in the quality assurance of administrative data document.
5. RoS began compiling quarterly statistics on the property market with the completion of the extension of the Land Register to all counties in Scotland in April 2003. Details of all of our property statistics releases, including the UK House Price Index, Annual Property Market Report, and future publication dates are available on our website.
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