Scotland continues to defy much of the nationwide housing market with house price growth in Glasgow and Edinburgh outperforming many other UK cities.
The latest UK Cities House Price Index shows growth slowing south of the border, as the market adapts to a changing profile of demand, resulting from tax and policy changes and increased mortgage regulation.
However, prices are continuing to rise in Glasgow, which saw a 3.3% increase in house values in the 12 months to September. While the rate of growth has slowed from 5.3% in the previous year, the average property across the city is now worth £127,000.
Edinburgh saw property prices rise by 4% over the same period, compared with 7.1% the previous year, with the average home in the capital now worth £235,400.
Across the UK, city house price inflation is currently 1.9%, ranging from a high of 4.8% in Leicester to -4.0% in Aberdeen, which continues to suffer the effects of a global slump in the oil and gas industry.
The number of cash buyers has fallen since 2016, particularly across southern England as falling investor demand has compounded the slowdown.
Average prices in Newcastle, Aberdeen and Belfast are still below peak levels. Aberdeen prices have fallen since 2015 in the wake of the oil price collapse and Belfast prices were over-valued in 2007.
Despite the gloom, demand remains high north of the order, particularly in central Scotland including Glasgow and surrounding areas such as Lanarkshire and Argyllshire
Archie Love, Director of Scottish Property Centre Motherwell, said: “The rate of house price growth may have slowed slightly over 2019 but the general picture here is still very positive.
“Of course, Brexit has had an impact with some buyers and sellers delaying decision making ahead of deadlines, but the underlying demand from mortgaged homeowners is holding up thanks to low mortgage rates and record employment.”
For more information on property prices in your area call your local Scottish Property Centre branch or visit www.scottishpropertycentre.net