The Elite Ayrshire Business Circle

The Elite Ayrshire Business Circle

Saturday, 19 January 2008

Scottish house prices continue rising while those in UK fall

HOUSE PRICES in Scotland rose by 2.4% in the final quarter of 2007, compared with a 0.8% fall in prices across the UK as a whole.


The annual rate of house price inflation in Scotland at the end of last year was 13.1%, the strongest price rise in the UK and well above the UK average increase of 5.2%.

But Scottish housing continues to be the most affordable in the UK. The average price of a house in Scotland is currently £144,897. This is 26% less than the UK average of £197,071.

Cumnock in Ayrshire is the most affordable town in Scotland with an average house price of £111,269.

Bank of Scotland expects a slowdown in the Scottish housing market in 2008 and predict house price growth of 4%.

Bank of Scotland chief economist Martin Ellis commented: “The Scottish housing market is the best performing market in the UK. Scottish house price inflation is 13.1%, well above the UK average increase of 5.2%.

“A key factor driving the increase in house prices in Scotland has been its relative affordability. Scottish house prices continue to be the most affordable in the UK. At £144,897, the average price of a house in Scotland is 26% less than the UK average of £197,071.

“We expect a slowdown in the Scottish housing market in 2008 and predict house price growth of 4%. This would be the smallest rise in Scottish house prices in eight years.

“A large numbers of Scottish borrowers who took out fixed rate mortgages in 2005 and 2006 at very low rates will move onto higher rates as their mortgage term expires this year. Higher food and energy prices will also take up more of Scottish homeowners’ income, reducing the amount many householders have to spend on housing. These factors are likely to lead to slower house price growth in Scotland in 2008.”

The average price of a house in South Ayrshire is now £177,858 compared to £162,215 a year ago - a rise of 10%.

In North Ayrshire the average house price has risen 14% from £123,532 at the end of 2006 to £140,535 in December 2007.

The lowest rise was recorded in East Ayrshire, where the average house price has risen just 6% in the past year from £129,050 to £136,711.


Director of Donald Ross Estate Agents in Ayr Steven Miller (pictured above with his wife and fellow-director Jacqueline) commented: "2007 was a challenging market place. However, this latest survey shows the Ayrshire housing market to be extremely robust with strong growth compared to elsewhere in the UK.

"We feel that 2008 will be an excellent year whether you are buying or selling, albeit at a lower level of house price inflation compared with previous years. Overall we feel the medium-term forecast in the local market is reasonably stable with modest growth."

Donald Ross Estate Agents
11 Beresford Terrace
Ayr KA7 2ER
Ayrshire
Scotland

Contact: Steven Miller, Managing Director
Tel: 01292 288222
Fax: 01292 280083
E-mail: office@donaldross.co.uk
Web: http://www.donaldross.co.uk/

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