Average house prices in Scotland rose by the third highest level in Britain in December.
The LSL/ Acadata Scotland House Price Index showed that Scottish house prices increased by £5,131, or 3.6 per cent, between December 2012 and the same month in 2013.
House sales topped 9,000 in December, the highest level recorded in Scotland in a single month since July 2008 and a 27 per cent increase in properties sold from December 2012.
Richard Sexton, director of e.surv chartered surveyors, part of LSL Property Services, comments: “The recovery of the Scottish housing market is bouncing ahead, with price rises leaping past those seen in every other region in Great Britain aside from London and the South East. Average prices are now £5,131 higher than the same time last year, propelled forward by a prolific number of sales. In fact, December saw the greatest number of homes change hands in a single month since July 2008 and 27 per cent more sales than a year ago.
“The main force behind such staggering sales activity has been the dramatic return of the first time buyer. The Help to Buy scheme in Scotland jump-started first-time buyers into action by enabling more aspiring homeowners to enter the market. An inviting cocktail of record low interest rates, easier lending conditions and a feast of competitively priced products with lower deposit requirements has attracted new buyers en masse.
“On a regional basis, prices are scattered like pieces in a jigsaw puzzle. Areas like Edinburgh, and parts of the East Lothian, home to scores of wealthier buyers, have seen resounding price rises over the past year. These areas are full of buyers with more equity, so there is less strain on securing a mortgage. This is pushing demand above supply and causing prices to rise. Yet in less affluent areas with high unemployment, activity has fallen which in turn has dragged down prices. But looking at the national picture as a whole, there is certainly a replenished level of confidence both from buyers and lenders.
“With recovery now firmly on course, the challenge this year is satisfying the pent up demand – which is currently vastly outstripping supply. House building must be placed at the heart of the Scottish government’s plans and will prove critical in driving the recovery forward at a viable rate. Similarly there are also concerns over the impact that Scottish Independence could have on house prices, especially when faced with the potential implications for Scotland’s economy if the UK pound is kissed goodbye.”
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