Scottish homes are now more expensive than ever, with the average price smashing through the £225,000 mark for the first time.

According to the latest data from Walker Fraser Steele, the average house price in Scotland hit £224,977 in April. That’s a jump of 1.1% compared to March and a significant 2.9% increase compared to April last year.

But what’s driving this surge in prices? And what does it mean for buyers and sellers?

Expert Predicts “Upswing in Confidence” Will Continue

Scott Jack, regional development director at Walker Fraser Steele, believes that a renewed sense of optimism is behind the booming market.

“House prices in most of Scotland have risen sharply in recent months, rising by more than £2,000 in March and again in April,” Jack explained. “This upswing in confidence is a result of growing salaries, falling inflation, and the anticipation that interest rates will start to come down later this year.”

And it’s not just overall prices that are on the rise. 19 local authorities across Scotland reported increasing house prices in April, outpacing the 12 areas that saw a decline. Even more impressively, eight local authorities witnessed record-breaking house prices.

Good News for First-Time Buyers?

This positive trend isn’t just limited to house prices, either. Jack highlighted that mortgage lenders are now offering loans at higher loan-to-value (LTV) ratios, making it easier for first-time buyers and those with smaller deposits to get onto the property ladder.

“Consumer sentiment is therefore more buoyant but so is that of mortgage lenders who have been able to lend at higher LTVs, which has improved the situation for first-time buyers and other borrowers facing affordability stretches,” Jack added.

With this positive outlook, Jack believes “The Scottish housing market is poised for success in the remaining months of 2024.”

So, whether you’re considering buying your first home, climbing the property ladder, or cashing in on your investment, it seems the Scottish property market is one to watch in the coming months.