'Rollercoaster year' for property market ends with Scottish housing boom

House prices in Scotland have risen at a faster rate than the other UK nations since lockdown began, after a "rollercoaster year" ended with a property market boom.

Data shows that average house prices north of the border rose by 6.8 per cent between March and September, increasing to £161,510.

Meanwhile, in England the rise over the same period was 4.9 per cent, following by Wales and Northern Ireland, where prices rose by 1.9 per cent and 1.6 per cent respectively.

Agents said that the surge was the result of considerable pent-up demand in the property market, while there has also been an increase in the number of people looking to swap the city for rural locations with more outdoor space.

“Everyone was spending so much time in their properties that it made them appreciate what they enjoyed and what they disliked about where they lived,” David Alexander, the joint chief executive officer of apropos by DJ Alexander, the UK-wide letting firm which carried out the analysis, said.

“The demands of working from home, and a growing need for open spaces has led to many individuals seeking to change their home as quickly as possible. The result has been an enormous increase in demand over a relatively short period and this is continuing.”

In Edinburgh, the number of properties for sale  last month was almost 50 per cent higher than it was in November last year. While cuts in stamp duty and the equivalent Scottish levy, Land and Buildings Transactions Tax, is believed to have been another factor, prices were already on the rise when the changes were introduced.

Rettie, an estate agent which covers sales across Scotland, has also reported a recovery in the housing market following a collapse in spring.

It said listings of new properties for sale in Edinburgh and Glasgow had jumped to levels well above summer and autumn last year, with rental demand also strong.

Rettie said its research suggested that average house prices had risen by 1.6 per cent across Scotland in the first three quarters of the year, although the number of property transactions fell.

It forecast average house price growth of 11 per cent by 2024 with transactions recovering to 2019 levels by 2023.

However, Dr John Boyle, Director of Research at the company, warned that the boom may not continue in the short term.

He said: “It has been a very odd year and a very odd market, which crashed deeper than the 2008/09 recession in just 3 months before roaring back at levels not even seen in the noughties boom times.

"Things are now settling a little and while 2021 won’t be the same rollercoaster ride, likely recessionary conditions should mean a subdued market once the revival peters out. However, if 2020 has done anything, it has made people think about change, including how and where they live – that might give the housing market fresh impetus.”