AVERAGE house prices in Scotland have continued to rise over the last year despite predictions that higher interest rates would cause them to fall, according to property firm DJ Alexander Ltd.
The business said average prices rose by 1.57% between June 2022 and May 2023, with ‘substantial variations’ seen across the country.
Edinburgh had the largest increase among Scotland’s main cities, rising by 3.35% with May’s figure of £334,118 the second highest ever recorded. Average prices in Aberdeen rose by 0.81% while Glasgow was down 1.68% and Dundee fell 3.59%.
DJ Alexander said there have been ‘enormous’ regional variations with East Lothian having the highest increase of 16.31%; Inverclyde up 4.96%; and North Lanarkshire prices increasing by 1.66%.
David Alexander, chief executive of DJ Alexander Ltd, said, “We can see that house prices in Scotland appear to be holding up well. As interest rates started to rise over the last year average prices began to dip but we have seen a recovery from those falls and now see positive price rises across many geographic areas and differing property types.
“The detached home market remains king at the moment and is the gold standard in buyers’ eyes. People want outside space and, while this was a trend which began during the pandemic lockdown it is showing no sign of abating.
“It is perfectly legitimate to question just how long prices can continue to rise but the appetite for homebuying is not slowing down in most parts of Scotland and, indeed, in places like Edinburgh and East Lothian we appear to be experiencing something of a boom once more.
“You would think it can’t last but central belt areas, and Edinburgh in particular, do attract buyers from across the UK and internationally so many of these people will be able to give strong offers despite wider economic woes.”
