Scottish market remains resilient

Has your house price stayed the same?

Rightmove reports an annual dip of -0.1% in average asking prices, while Zoopla reports +0.1% and Halifax’s house price index reports a -1.9% monthly change, with average house prices being £279,569.* The range of actual annual house price growth ranges from +1.7% in Scotland to -1% in London.*

What does this mean for the Scottish market?

Since July, there has been a slight dip in asking prices in the Scottish market, with August marking a -0.9% decrease for properties coming to market.* However, when looking at the year-on-year change, the average asking price is +4.6% higher, reaching £190,305, and it’s important to keep in mind that, overall, house prices in the UK are still 19% higher than the 2019 pre-pandemic levels.* Additionally, across our Scottish branches, Graham Crockett Area Director for Countrywide Scotland South, comments that across Glasgow and the central belt activity remains high, with a sales’ rate in line with the same period last year.

This time of the year the housing market usually sees a seasonal slowdown or dip in asking price, this becomes more apparent when looking at the past year’s Government house price indices (excluding 2020). Both August and September house prices experienced similar trends in terms of that we are currently seeing in asking price dips and slow growth. The average month-on-month house price growth for 2019, 2021 and 2022 for August and September house price changes was 0.7% and -0.3% respectively.†

How do other UK regions compare to Scotland?

As with the month’s before, Scotland remains to be the region in the UK to have the shortest average number of days to sell, currently being 31 days.* What’s more, Scotland, the North East, Yorkshire & Humber, London, and the North West have all experienced year-on-year increases when looking at the price of properties coming to market. However, month-on-month, all regions in the UK have seen decreases, except for the North East which saw a 0.8% monthly increase, meaning that house prices in that region have now reached an average price of £186,144.* The North West is slightly ahead of Scotland, and is the region with the smallest monthly decrease of -0.6% and house prices lying at £253,859, while the South West saw the largest month-on-month change with -3.2%, where the average property price now is £384,182.*

The prices of properties coming to market in Wales have also decreased by -1.4% month-on-month and by -1.5% year-on-year, meaning that the average Welsh house price now is £257,090.*

Wondering how this may have affected your property’s value?

What does this mean for the lettings market?

The Scottish market has seen the largest increase in annual rent (+14.4%) out of all of the UK regions, and a monthly rent increase of 1.2%, meaning that the current average monthly rent is £985 per calendar month (pcm), up from last month’s £940 pcm.** This means that renters in Scotland, on average, spend 24.2% of their income on rent, £276 less than the UK average of 32.3%.**

There may be some relief in the form of more rental stock coming on to the market, as the Scottish parliament introduced new legislation updating the current licensing needed for short-term lets in Scotland. From 1 October 2023, all existing hosts and holiday lets, including Airbnb, must apply for a licence to operate from the appropriate local authority. For the full list of legal requirements, click here.

Additionally, there has been news that the Scottish Government is seeking to implement long-term rent controls to be introduced by the end of 2025 – if the Government's draft strategy passes into law. As it currently stands, this draft “seeks to improve accessibility, affordability choices and standards across the whole rented sector in Scotland”. We’ll closely follow how, when and if these actions will be implemented, as currently nothing is set in stone.‡

Taking the wider picture into account, average rents in the UK have increased by 1.4% over the last month and by 10.3% year-on-year, meaning that the average renter is currently paying £1,261 pcm, while renter affordability has decreased by -2.2%, with London seeing the biggest drop in renter affordability (-4.9%).** It’s important to also keep in mind that the increased costs, higher mortgage rates and the continued imbalance between supply and demand is placing greater stress on both landlords and tenants as they navigate the current rental market.

To understand how these market trends may have affected your property investment, a current expert valuation is the best way to get started and gain a clearer picture.

Find out how your property value has changed