Housing shortage makes an impact by pushing up prices

Housing shortage makes an impact by pushing up prices
Housing shortage makes an impact by pushing up prices

HOUSE prices in Scotland have grown slightly in the past three months, official figures have found.

Research shows the price of an average home in Scotland increased by 0.6 per cent between July and September compared to the same period the year before.

But price fluctuations across regions means some council areas continue to outstrip others, with hotspots situated in the Central Belt and the islands.

The highest rise in house prices on the mainland was found in East Renfrewshire, where the value of property grew almost 10 per cent and it now has the highest average price of £246,120.

But the biggest fall was recorded in Aberdeen, which reported a decrease of 7.5 per cent in average price compared to the same quarter the previous year to £200,790.

This reflects the downturn in the oil industry brought on by the historically low oil price, which has lead to a number of job losses.

Prices also rose by 11 per cent in the Western Isles, although data from this area is skewed by the relatively few numbers of homes being sold and the often large price variations between properties changing hands.

The average price of property in Glasgow rose by 5.3 per cent, from £140,417 last year to £147,809.

Estate agents say a lack of new houses coming on to the market is helping push prices up and ensure that homes in sought-after areas sell for well above their asking price.

The latest statistics from Registers of Scotland (RoS) also found the volume of residential property sales in the quarter was 26,982, a decrease of 1.1 per cent compared to the previous year.

The highest percentage rise in volume of sales was recorded in Clackmannanshire, with an annual increase of 34.6 per cent to 284 residential sales compared with the same quarter the previous year.

The City of Edinburgh recorded the highest volume of sales at 3,334, a fall of 3.2 per cent compared with the same quarter the previous year.

Overall, the average price of a property in Scotland was said to be £170,309, up from £169,334 the year before.

Michelle Grant, investment director at Grant Property, said fresh stock was needed to drive the market. She said: “Low interest rates and a shortage of stock have continued to drive demand and push up prices.

“With fierce competition from both domestic and overseas investors, properties are not on the market for long and there is a very quick turnaround from marketing to selling.

“Prime areas in Edinburgh have proved particularly popular, with most properties selling for 15-20 per cent over Home Report valuation.”

Meanwhile, a separate report found house sellers in Scotland’s largest cities are bucking the UK trend on how long they wait for a buyer to come along.

A study from Post Office Money Mortgages found sellers in Edinburgh had the second least amount of time to wait, with homes spending 53 days on the market, compared to Bristol at 51. In Glasgow, it is about 56 days, compared to the UK average of about three months.

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