Highlights from the August House Price Index:
- Strong demand for Scotland’s top-value homes
- Lockdown-inspired ‘lifestyles’ influencing buyers’ choice
- Transactions at 39% of 2019 levels
- Edinburgh and Glasgow accounting for nearly 50% of Scotland’s 3.2% annual growth
Note: The Walker Fraser Steele House Price Index (Scotland) was formerly the Your Move Acadata House Price Index. Content and methodology are unchanged. Please refer to the Notes at the end of the report for more information.
Alan Penman, business development manager at Walker Fraser Steele, comments:
“In line with the rest of the United Kingdom, Scotland’s house prices have continued to rise in recent months, following the re-opening of the market. The increase is linked to tax holiday schemes, the release of pent-up demand following lockdown, and a shift in buyer habits.
“Indeed, the pandemic has not only had an effect on how the market operates in Scotland, but also on buyer preferences. Many prospective buyers appear to have changed their priorities and, as working from home has become the norm for so many, larger properties with more outdoor space have become increasingly popular. Increasing activity in this sector of the market has led to a corresponding increase in average prices.
“Additionally, following the Stamp Duty Holiday in England, Scotland raised the nil Land and Building Transaction Tax (LBTT) threshold from £145,000 to £250,000, saving buyers in this bracket 2% of their purchase price in tax fees, further incentivising activity in the market.
“The result of this stimulus has been that Scottish properties have risen in value by 2.5% since the housing market reopened for socially distant viewings in May, and 1.1% of this increase comes since the increase of the LBTT threshold.”
Summary of regional house price changes:
Note: The monthly Walker Fraser Steele House Price Index reports on transaction numbers and the movement of average house prices in England and Wales, including regional data. The Index uses:
- The actual prices at which every residential property in Scotland was transacted, including prices for properties bought with cash, using the data provided by Registers of Scotland as opposed to valuation estimates or asking prices
- The price of every single relevant transaction, as opposed to prices based upon samples.