October sales push leads to rise in house prices

Average house prices have increased in Scotland, with the highest number of October sales for eight years.

Published 16th Dec 2015

Average house prices have increased in Scotland, with the highest number of October sales for eight years.

The average home now costs £168,843 after a rise of £761 on September and a £1,600 rise on October last year, a report found.

There were 9,416 sales in October, up 10% on the same month last year and making it the strongest October for sales since 2007.

Estate agents Your Move said a growth in sales of properties worth more than £1 million was behind the average price rise.

There were 30 sales in excess of £1 million between August and October, up from 14 in the previous three months, Your Move found.

East Lothian saw the biggest growth in average price - 6.3% or £14,000 - due to the completion of a number of new housing developments.

Your Move managing director in Scotland Christine Campbell said: Movement in the million-pound homes market is starting to kindle measures of Scottish property price growth in the run-up to Christmas.

Average property prices in Scotland have shot up £1,600 in October, twice the £761 rise witnessed in the month of September as sales of million-pound homes start to glow again.

This smouldering growth means that we have seen the largest month-on-month rise in property values since the introduction of the land and buildings transaction tax (LBTT) in April this year and the fourth biggest monthly jump since August 2007, at the height of the housing boom.

On an annual basis, house price growth is also shining brightly, up by 1.6%, the largest increase in five months.

The hottest price rises in October have been in East Lothian, where the value of a typical property has climbed £14,000 (6.3%) since September - an increase ignited by new home developments coming onto the market.

The seaside town of North Berwick has experienced some of the strongest sales activity over the summer as buyers hunt for somewhere which has an easy commute to Edinburgh.

Throughout Scotland as a whole, there have been twice as many sales of homes worth more than £1 million between August and October, with 30 sales compared to just 14 in the three-month period before.

The top of the market now appears to be recovering after being initially scolded by the steeper LBTT.''