Good news for Scottish homeowners – house prices have hit record highs for the third month in a row, despite recent worries about rent caps hitting investment.
The average price for a property in Scotland is now £225,636, according to the latest figures from property experts Walker Fraser Steele. That’s a jump of 2.5% compared to this time last year, and a 0.3% rise from April.
This positive news comes after some industry whispers that Scotland could be a no-go area for investors, thanks to the Scottish Government’s introduction of rent caps.
Experts Optimistic About the Future
Scott Jack, a top figure at Walker Fraser Steele, reckons the Scottish property market is still looking strong. He said: “Scotland’s residential property market gives us further cause for optimism this month as average home prices increased in May for the third month in a row.”
He added: “The market has remained remarkably resilient in recent years given the challenges it has faced but this month’s gain of nearly £600 (0.3%), represents the strongest performance for two years. This is a hat trick of record new house prices over the past three months.
“Our data shows that Scotland’s average house price is now well in excess of £225,000 and comfortably above its earlier peak in September 2023. Clearly, Scotland is enjoying an earlier and stronger revival than across most of England and Wales.”
Local Differences in House Prices
It’s not just the national picture that’s looking rosy. West Dunbartonshire takes the prize for biggest annual price surge, with values rocketing by 12% to hit an average of £153,786. On the flip side, East Lothian saw the largest drop, with prices easing back by 6% to £324,693.
New Government Could Boost the Market Even Further
Looking ahead, Mr Jack predicts even more good news for homeowners, citing the new government as a potential driving force. He explains: “At a local authority level, the market saw increases in 15 areas, and, with the onset of a new government, we expect market sentiment will further improve.”
He points to the government’s commitment to supporting the mortgage guarantee scheme, which has been a success story in Scotland, and hints that the Bank of England could soon start cutting interest rates – music to the ears of borrowers.