Scotland has seen a significant increase in house prices, with average costs jumping by over £12,000 in just the last year. This growth starkly contrasts with the rest of the UK, where house prices have barely budged, and even decreased in some areas.
According to the latest analysis by DJ Alexander, a leading lettings and estate agency, the average price of a Scottish home has increased by £12,379, from £177,949 to £190,328 between February 2023 and January 2024. This growth isn’t just a blip on the radar; it represents a substantial upward trend in the Scottish housing market.
In contrast, the rest of the UK hasn’t seen anywhere near this level of growth. Overall, UK house prices edged up by a mere £439 in the same period. England, in particular, experienced a decline, with average house prices falling by £2,760.
Regional Highlights and Lowlights
The rise in Scottish house prices isn’t uniform across the board. Some areas have seen more significant increases than others:
- East Lothian leads with a whopping increase of £27,071.
- Edinburgh, the capital city, isn’t far behind with an increase of £19,844.
- East Dunbartonshire and Midlothian also saw considerable rises, with homes going up by £19,099 and £16,222, respectively.
- East Renfrewshire enjoyed a healthy boost of £14,637.
However, it’s not all sunshine and rainbows. A couple of regions witnessed declines:
- Argyll and Bute saw the most significant drop, with average prices tumbling by £10,519.
- Dumfries and Galloway experienced a slight decrease of £623.
Urban vs Rural Living
David Alexander, CEO of DJ Alexander Scotland, provided insight into the current trends, “Large house price increases have occurred in a wide range of areas both around Edinburgh and Glasgow, but also a substantial rise in Dundee and strong growth in Aberdeen. Buyers seem to be keen to live in, or within easy travelling distance to, our major cities, and there are some signs that the trend for rural and remote home buying may be on the decline. Certainly, the drop in prices in Argyll and Bute and Dumfries and Galloway would indicate this and the trend toward country life may be reversing at the moment.”
Affordability in the Spotlight
Despite the overall price increases, some parts of Scotland, and indeed the UK, remain relatively affordable:
- East Ayrshire stands out as the second most affordable place in the UK, with an average home costing £129,000 — only 3.6 times the local average salary.
- North Ayrshire and Aberdeen also offer relatively affordable housing options compared to the rest of the UK.
In comparison, the average UK home sold for £282,000 in the year to January, a staggering 8.1 times the average full-time salary. At the extremes, Burnley emerges as the most affordable town, while Kensington and Chelsea sit at the opposite end of the spectrum, with the average home selling for an eye-watering £1.2 million.