House Price Index //

WFS House Price Index (Scotland) – January 2021

Understand the changes in transaction numbers and average house prices across Scotland in January 2021.

Highlights from the January House Price Index:

  • The race for space continues
  • Sales of detached homes increase at fastest rate of all property types
  • Transactions in Q4 2020 climb by 25% on Q4 2019 levels
  • Annual price growth reaches 9.0% in January

Alan Penman, business development manager at Walker Fraser Steele,
comments:

“As in the rest of the UK, buyers are seeking property in country locations. Areas that continue to do well in Scotland include Aberdeenshire, Perthshire, and Ayrshire. More generally, Scotland’s housing market continues to offer exceptional value for money compared to many areas south of the border.

“Demand regionally has been fuelled by changing housing preferences as a result of the pandemic and the lockdowns of the last year. The pandemic has changed what many people want in a property and, in many cases, they are leaving big cities for smaller towns or more rural areas. Lifestyle changes and the changes to Land and Buildings Transaction Tax (LBTT) have worked together to help underpin the price rises of the last year.

“It is possible that the successful roll-out of the vaccination programme and the gradual relaxing of pandemic measures will, in conjunction with the extended government support for jobs, continue to underpin home-owners and buyers’ confidence. The raising of the nil threshold last July prompted a growth in the volume of first-time buyers in the Scottish market helping transactions grow 25% in Q4 compared to Q4 of the previous year. Holyrood has decided to end the LBTT holiday on 1st April this year, however, the market has shown it has performed well with its support with annual price growth in January 2021 reaching 9%.”

Summary of regional house price changes:

Note: The monthly Walker Fraser Steele House Price Index reports on transaction numbers and the movement of average house prices in Scotland, including regional data. The Index uses:

  • The actual prices at which every residential property in Scotland was transacted, including prices for properties bought with cash, using the data provided by Registers of Scotland as opposed to valuation estimates or asking prices
  • The price of every single relevant transaction, as opposed to prices based upon samples.