High demand from investors and end-users has contributed towards steady price gains in Scotland, one of the UK’s major housing markets. Lower inventory and comparative home affordability are factors driving high sales volumes in Scotland in recent times as per reports. A property boom is being witnessed in Scotland with home values increasing more than overall price growth throughout the UK. There is strong home demand in major cities in Scotland and there is also the allure of a good lifestyle which is contributing towards soaring demand for residential property here.
Several UK families are also shifting to Scotland on account of several reasons including higher value for money propositions, better quality of life and improved educational prospects. For September 2018, prices in Scotland went up by around 5.1% as per reports. Average home prices in Scotland thus jumped up to £184, 030, indicating a rise of almost £7,000. Annual growth in the same time period was only 0.9% in England and Wales. Over the last 2-3 years, property prices have been growing steadily in Scotland while prices have been moderating from the year 2014 in England.
Average home prices in Scotland are lower than those in Wales and England which is a major factor behind recent growth. However, in spite of the recent boom, property prices in Scotland are still lower by 15% than the prices seen prior to the 2008 global financial market crash as per experts. There is considerable room for gains over the next few years as a result. Prices are also going up due to lower inventory levels. The new listing numbers for Scotland are the lowest in the entire UK according to reports and this is another factor behind the increase in home prices. For H1 2018, there were 45, 250 units sold in Scotland.
A considerable chunk of properties that are being sold are situated in Edinburgh while Glasgow also continues to be a major contributor towards the real estate boom. Both cities account for roughly a quarter of all home transactions in the country for a month. For Edinburgh, prices went up by 9.6% to stand at £287,473 while they increased similarly in Glasgow to touch £166,094 which is a new peak. In spite of uncertainty surrounding Brexit, global investors and buyers continue to pursue second homes in Scotland and this is another factor that has bolstered the growth of the property market here.