Scotland sees a drop in house price for the first time since June 2015
A drop in house price in Scotland has to be good news for buyers anxious to get onto the property ladder in that country and figures reveal that an overall drop of 2.1% year on year was recorded. This means that the average price of a home now stands at £168,020, according to figures released in the latest Your Move monthly index. The drop in price is to be welcomed and it is seen in spite of a surge in sales that witnessed a growth of 19% year on year, the strongest since February 2008.
In common with other areas of the UK, the sales growth is attributed to added demand from buy to let investors ahead of the April stamp duty change. Other changes have occurred with Edinburgh being knocked off the top spot for price growth where house prices have declined 3.2% month on month, but Midtholian bucked the trend and in fact broke the record for property values in February, this surpassed the previous pre crisis peak.
Christine Campbell, Your Move managing director in Scotland, made the point that it has to be down to the introduction of the Land and Building Transaction Tax (LBTT) at the beginning of 2015 and is unconnected to anything else happening in the market which has seen Scotland flouting trends with a sales jump 10% up month on month.
From the sales figures we can see that the demand has been at the lower end of the housing market, particularly in Edinburgh and Glasgow, with the emphasis on sales of flats, obviously for investment purposes. At the same time there has been a slowdown at the top of the market, this has been attributed to uncertainty surrounding the upcoming Scottish Parliament election and European Union referendum.
In common with other regions of the UK, across Scotland whilst some areas have seen a price drop, others witnessed rises; East Lothian has seen home values up 9.1% or £19,548 from January and in Midlothian house prices have set a new record and are now worth £198,977, surpassing the previous peak of nine years ago.