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Insider UK
Business
Peter A Walker

Average Scottish house prices rise by £23,000

The average house price in Scotland increased by more than £23,000 to £242,213 in the last year.

Kirkcaldy recorded the biggest percentage increase, up by 29% (£45,798) from £157,779 to £203,577.

The second biggest rise was in Johnstone, Renfrewshire, where average prices were up by 24% to £245,849 over the year.

Dunfermline was among the other significant risers, with property costs going from £190,087 to £226,481.

The figures from Bank of Scotland revealed an average property price rise of 10.9% across the country.

Prices in Edinburgh (up 12.9%) and Glasgow (13.6%) also rose from 2021 to 2022.

At the other end of the scale, Ayr and Inverurie in Aberdeenshire were the only towns to see prices fall back during 2022, by 1.7% and 0.2% respectively.

Graham Blair, mortgages director at Bank of Scotland, said shifts in buying patterns meant that big cities did not lead the way in 2022.

"Unsurprisingly, Edinburgh remains the most expensive place to buy, but its rate of property price inflation was outstripped by a number of locations nearby.

"This is partly due to pandemic-driven shifts in housing preferences as buyers sought bigger properties further from major urban centres.

"We can see this clearly in commuter towns across Scotland, but Fife has been a notable hotspot, with both Kirkcaldy and Dunfermline recording strong house price growth."

This year, house price growth is expected to slow in Scotland, following more than two years of rapid growth. "A period of adjustment was always likely, particularly given the current economic environment," added Blair.

Meanwhile, estate agency and solicitors Lindsays recorded a 2.8% rise in capital sale prices during 2022, as market resets amid cost-of-living crisis and political turmoil.

Throughout 2022, the average price of homes sold through its Edinburgh office was £325,000. That compares to £316,000 in 2021.

Those sales were largely in and around the city, but also cover the wider Lothian regions.

In Dundee, the estate agency recorded an average price of £204,000 during 2022 - up 13% from £180,000 in 2021 - and the first time Dundee’s average price has exceeded £200,000.

Andrew Diamond, partner and head of residential property at Lindsays, said: “We’re not seeing any lack of appetite among buyers and sellers, what we are experiencing, though, is a resetting of the market.

“The outlook may, to some, have seemed dreadful in the very short term, but has improved as time has moved on, interest rates have already started to settle and mortgage rates are dropping slightly.

“What we might see in early 2023 is a much more stable, tradeable market, with price at a slightly less frothy level, but with a greater ability for buyers and sellers to actually trade - to get things done.”

Registers of Scotland figures show the average price of a property in Scotland in October - the most recent month analysed - was £194,874, an increase of 8.5% on October 2021.

Prices rose by 1.1% between September and October.

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