The average price for a Scottish home has risen dramatically since 2019, as have prices across the UK as a whole.
Average house prices continue to increase
Scottish homeowners have enjoyed rising home prices in the last 5 years, but this growth has slowed.
However, unlike the average UK property price, the average Scottish property is still rising in value.
In January the average price of a property in Scotland was £190,328, which is an annual change of over £5,000 since the start of 2023.
In contrast, the average UK home price in January was £2,000 lower than it was for the previous year.
Therefore it's clear that, although a part of the UK, the Scottish housing market is setting its own pace.
However, this is just the average trend. Taking a closer look at specific areas reveals how some parts of Scotland are seeing growth, while others are seeing a decline.
Price action by area
In major cities price action was generally positive as 2023 came to a close.
It was a similarly positive story for Dundee, where the average property price increased by 2.5%.
The surrounding areas also experienced growth and consolidation, with areas around Edinburgh and Dundee seeing price increases varying from modest consolidation of 0.3% in Perth and Kinross to significant growth in East Lothian of 6%.
In contrast, the city of Glasgow showed little growth, with the average property price increasing by only 0.1%.
This could be seen as the consolidation of house price rises in recent years rather than stagnation. The prices increases we witnessed through the pandemic were significant, so it makes sense that the market could be cooling off.
However, we will have to wait and see what the market decides in the next few years to understand where prices are going now that growth trends are returning to pre-pandemic levels.
How the Scottish government is incentivising buyers
The Scottish government is eager to sustain growth in the housing industry and encourage new investors into the market.
Therefore they have a number of schemes in place to help get you moving.
Land and buildings transaction tax (LBTT) break for first-time buyers
When you purchase a property in Scotland you normally have to pay a land and buildings transaction tax (LBTT). It is similar to the Stamp Duty land tax you'd have to pay when purchasing a property elsewhere in the UK.
If you're a first-time buyer and the property you purchase in Scotland is worth £175,000 or less you won't have to pay anything in LBTT, helping reduce the upfront costs of getting you on the property ladder.
If the property is worth more than £175,000 you can pay a reduced amount of LBTT instead.
For more details, read the Scottish government guidance here.
Shared ownership
To help buyers who can't afford the total cost of a property, you can buy a share of a property and a housing association will own the remaining shares.
You can buy a 25%, 50% or 75% share of a home and pay an Occupancy charge to the housing association.
You can find available properties for the scheme from participating social landlords in the area you are interested in.
The scheme is open to first-time buyers with limited housing alternatives, families on low incomes, public sector tenants, and more. You can find out if you qualify here.
Affordable Housing Supply Programme (AHSP)
The affordable housing supply programme is a range of funding schemes to make more Scottish homes affordable.
The Scottish government have dedicated itself to delivering over 100,000 affordable homes by 2032, of which 70% will be available for social rent.
You can find out more about the programme on the Scottish government website here.
Do you own a property in Scotland? Are you curious how much it could be worth in the current market? Book a free no-obligation property valuation and our expert local team will be in touch.
Your Move E-Marketing Executive
