Scotland’s latest HPI celebrates new record high

The latest HPI data from Walker Fraser Steele powered by Acadata, indicates annual growth with a 1.2% increase in the average sale price of a home in Scotland – 2.4% higher than this time last year. This marks a departure from the downward trend seen in 2023.

The driving factors are believed to be a renewed emphasis on home ownership and first-time buyers, as market recovery spreads to most of the country.

Regional prices varied, with almost 75% of local authorities recording rising prices in December. Seven local authorities – predominantly in less expensive areas – reached new market highs in December. Perth and Kinross saw prices climb to nearly £257,000, with Inverclyde and Renfrewshire also supporting market recovery with price increases of 11% and 3%, respectively. East Lothian, however, experienced the largest annual decline, down 6% on the year.

Scott Jack, regional development director at Walker Fraser Steele, commented: “Total sales for 2024 are expected to reach almost 99,000, a 7% increase from 2023. The Bank of England’s rate cut is expected to boost consumer confidence, further supporting the market.

“The Scottish housing market shows resilience and growth. The recent increase in the LBTT surcharge on second and rental homes adds some pressure to the private rented sector, but the phasing out of temporary rent increase restrictions may help balance this. Overall, the focus is shifting back to home ownership and first-time buyers, with positive momentum building nationwide.”