Property Market Highlights
- Registers of Scotland Property Market Report 2023 Released
- Average Scottish House Prices Hit £216,337 Between 2022-2023, Up 7.1% From 2021-2022
- Total Volume of Property Sales Between 2022-23 Fell 7.9% Compared to 2021-22
- Interest Rates Rise for 13th Time Since December 2021, Impacting Mortgages
Registers of Scotland Property Market Report 2023 Released
The Registers of Scotland’s 2023 Property Market Report, released late last month, revealed several fascinating insights. Here, we’ll highlight some of the most interesting findings from the report.
Average Scottish House Prices Hit £216,337 Between 2022-2023, Up 7.1% From 2021-2022
According to the latest data from Registers of Scotland’s Property Market Report for 2023, the average house price in Scotland between 2022-23 was £216,337 – a 7.1% increase compared to 2021-22, and the highest average price recorded across the 20-year period of 2003-4 to 2022-23.
Between 2022-23, homes in the Orkney Islands enjoyed the largest boost in average prices, reaching £216,638 – a 15% rise compared to the same period of 2021-22. Coming in second was West Lothian with properties selling for an average price of £239,858 – a 12% increase.
The largest decrease in property prices was felt in Aberdeen City, where homes sold for an average of £186,410 – a 2.4% decline. Inverclyde was the only other local authority to see a dip, with homes going for an average of £132,881 – down 1.1%.
Zooming in on property types now, we see that detached homes enjoyed the highest average price of all at £330,917, as well as the lion’s share of the sales market at 29%. New build properties followed the lead, with average prices reaching £308,158 – an 8.0% boost compared to 2021-22. Flats came last, with an average property price of £158,241, and the second-largest share of the market after detached homes at 27%.
Total Volume of Property Sales Between 2022-23 Fell 7.9% Compared to 2021-22
Despite good news on rising average house prices, the Registers of Scotland’s latest data reports a decrease in the total volume of property sales between 2022-23.
101,055 new property sales were registered with the organisation between 2022-23 – a decline of 7.9% compared to the same period in 2021-22.
The cities of Edinburgh and Glasgow enjoyed the highest sales volumes across Scotland, accounting for 22% of all residential sales, with 10,826 and 11,529 sales respectively.
31% of All Properties Sold Were From Scotland’s Eight Cities
The 2023 Property Market Report also divulged that 31% of all properties sold in Scotland were located in one of the nation’s eight cities, while 20% were in rural areas. The average price paid for a city property between 2022-23 was £226,599.
The City of Edinburgh boasted the highest property prices in Scotland’s urban areas, with homes selling for an average of £302,565, while Inverclyde recorded the lowest at £127,817.
Meanwhile, in rural areas, East Renfrewshire enjoyed the highest average property price at £387,127 and Nah-Eileanan Siar held the lowest at £148,182.
Interest Rates Rise for 13th Time Since December 2021, Impacting Mortgages
Homeowners on mortgages with a variable rate will feel the effects of the recent interest rise the most according to ESPC. The Bank of England raised interest rates by 0.5% late last month, making this the 13th increase since December 2021. This came days after news that UK inflation reached 8.75% for the second month in a row.
The recent rise, which aims to make borrowing more expensive in a bid to cap spending, is unwelcome news for the 15% of homeowners currently on variable rates, while long-term impacts suggest that those looking to remortgage in the coming months are braced to face significant jumps in their monthly payments.
Inevitably, the recent interest rises are bound to affect the property market as inflated borrowing costs impact mortgage rates and deter those considering a move. Despite this, however, the local property market in Scotland’s key areas has shown resilience in the face of economic uncertainty – market activity in Edinburgh, the Lothians, Fife and the Borders continues to demonstrate strong supply and demand.
Moreover, while ESPC reports a dip in sales volumes against last year, average house values have increased 0.9% and an impressive four out of five sellers are achieving their Home Report Value or higher (gaining an average of 103.3% at sale).
In response to the latest interest increase, ESPC’s CEO, Paul Hilton, had this to say: “The right strategy for buying or selling will be more important than ever. The depth of experience across the ESPC Solicitor Estate Agency network is unparalleled, and many key personnel at firms will remember the 15% interest rates of 1992. With all that experience, no one is better placed to guide you on your next move than an ESPC Solicitor Estate Agent.”
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