Scotland’s housing market has seen its strongest growth in over a year, according to a recent report from Walker Fraser Steele, a company of chartered surveyors. Following a prolonged five-month slump, house prices across Scotland rebounded in March, with a robust increase of 1.4%, defying market expectations. This growth in property prices was not only unexpected but also surpassed the trends observed in other parts of the UK, such as England and Wales.

New Heights in House Prices

As of March, the average house price in Scotland has climbed to £223,525, just a whisker away from the peak reached in June 2023. This rise represents a near £3,000 increase from previous valuations, highlighting a significant recovery in property values across the region.

Scott Jack, the regional development director at Walker Fraser Steele, remarked on the market’s performance, stating, “This was a far stronger performance than that witnessed in the English and Welsh markets.” He also noted that while it’s premature to conclude that the pressure from rising living costs is easing, the recent competitive mortgage rates have been a contributing factor. Lenders are keenly vying for borrowers, which has helped bolster the housing market further.

Election Year Boost?

With a general election looming later this year, housing remains a pivotal issue for many voters. Jack suggests that the potential for new promises to home buyers and owners could provide additional momentum to the housing market’s current upward trajectory. Political commitments can often lead to increased market activity, as buyers and sellers anticipate changes in policy that could benefit them.

Widespread Gains Across Regions

The uplift in March wasn’t confined to a few areas but was observed across 21 local authorities—marking the most significant spread of price increases since May 2023. Notably, four regions, including Midlothian, Argyll and Bute, Falkirk, and Inverclyde, reached new price highs, underscoring the widespread nature of the market’s stabilisation.

The report also highlights Scotland’s five most expensive local authorities, all of which experienced price hikes in March, further supporting the region’s robust market performance. Midlothian, in particular, saw a price rise of 1.5%, pushing its average property prices beyond the £300,000 mark.