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Scottish house prices rise for eighth consecutive month

From Property Talk Live on June 18, 2014

Average Scottish house prices rose £6,250 or 4% during the year, 2.4% higher than rate of inflation according to the most recent LSL Scotland House Price Index.

The sale of homes rose 24% in the past 3 months compared to the same period last year, driven by first-time buyer demand. A new peak price was reached in East Renfrewshire, after 15% annual growth in the region.

Gordon Fowlis, regional managing director of Your Move, an estate agency chain that is part of LSL, comments: “April marks the eighth successive month that house prices have risen in Scotland, the longest run of monthly gains witnessed for four years. Average house prices have climbed £6,250 (or 4.0%) annually as the recovery builds in strength. This is more than just numbers on a page – the new stability is translating into a tangible ‘feel-good’ factor for millions of homeowners, buoying consumer confidence and anticipation of future price gains. In April, annual house price growth was 2.4% higher than the annual CPIH inflation rate, representing rising home value in real terms. One thing that could potentially upset the apple cart is the independence vote, having passed the 100-day milestone, kick-starting the countdown. While the Yes and No campaigns debate which outcome will leave households financially better off, many are already feeling the purse strings loosen.

“The starting gun may have gone off for the official campaign period, but the forthcoming Independence referendum has not prompted potential home buyers into delaying their purchase decisions. Activity is permeating the Scottish housing market, with overall house sales up 24% over the three months to April 2014 compared to the same time last year. Any uncertainty surrounding the fiscal, taxation or currency implications of an independent Scotland have not dented the confidence of homebuyers – in fact areas such as Stirling have seen sales soar by 52% over the last twelve months. The steep increase in the sale of properties during March and April is 10% above the usual seasonal trend. While transactions may be starting to cool south of the border, there are no indications of a sales slowdown in Scotland.

“First-time buyers remain a crucial lynchpin in the Scottish housing market recovery; driving activity from the bottom up. Last month’s announcement of further investment in the Help to Buy scheme will allow thousands more to climb onto the housing ladder and keep the foot on the pedal. House building and revived supply are providing additional impetus for growth. In East Renfrewshire a wave of luxury housing developments has helped fuel an annual price rise of 15.1%, reaching a new record of £236,463 – catapulting this to the top spot as the most expensive area to buy in Scotland.”

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Source: Property Talk Live