Scottish house price inflation above UK average
The annual rate of house price inflation in Scotland is now 12.5%, above the UK average of 9.9%, according to the latest Quarterly Scottish House Price Index from Bank of Scotland. Prices in Scotland rose by 3.0% in Q4 2006, below the UK quarterly rise of 4.2%.Over the past five years house prices in Scotland have almost doubled, rising by 97%.
The average price of a house in Scotland is currently £126,639. This is 32% less than the UK average of £186,954.
Aberdeen (27%), Kilmarnock (25%) and Motherwell (25%) recorded the largest increases in house prices in Scotland over the past year.
Lochgelly (£96,925) is the only town surveyed in both Scotland and the UK to have an average house price below £100,000. Edinburgh remained the most expensive place to buy a house in Scotland, with prices up 12% over the year to an average of £202,941.
Greater London prices are now 2.3 times higher than those in Scotland, compared with 3 times in Q4 2002.
Tim Crawford, Group Economist for Bank of Scotland, comments: "The housing market in Scotland continued to grow at a faster rate that the UK average for the fourth consecutive year in 2006. Despite this Scotland still remains the most affordable part of the UK to buy a house with an average house price nearly one third less than the UK average.
In 2006 Scottish house prices rose by 12.5%, above average growth but down slightly from growth rates seen in the previous three years. We expect house prices in Scotland to increase by 7% in 2007, outperforming the UK average (4%). Forecast Scottish house price growth rate is slightly above the long-term average of 6% per annum since 1983 but would be the smallest rise since 2001.
Aberdeen has seen the highest house price rises over the last year, 27% growth to £171,767, benefiting from a strong local economy, especially in the energy sector.
Looking at house price changes over the past decade, Musselburgh has seen the strongest percentage rise at 201%, with average house prices climbing from £57,433 in 1996 to £172,991 now. The town has seen interest from commuters to nearby Edinburgh who have been attracted by its slightly lower prices.
Edinburgh is still the most expensive place to buy a house in Edinburgh, and is the only town or city in Scotland with an average house price above £200,000. House prices in Glasgow are up 7% to £148,848, while Dundee has seen prices climb 21% over the last 12 months to £136,566. Inverness house prices are up just 1% over the year to £154,325.
Lochgelly (£96,925) is the only town surveyed in both Scotland and the UK to have an average house price below £100,000."
Property types
Over the last ten years flats & maisonette properties in Scotland have seen the strongest growth, increasing by 166% from £49,026 in Q4 1996 to £145,567 in Q4 2006.