Scotland sees record high house prices for third month in a row – WFS – The Intermediary – Latest UK mortgage news

Scotland has seen record high house prices for the third month in a row, new data from Walker Fraser Steele has revealed.

The average house price was recorded at approximately £225,636 in May, marking a monthly increase of 0.3% and an annual increase of 2.5%.

The number of local authority areas experiencing rising prices in the month closely matched the number seeing decreases, at 15 and 16 respectively.

Prices in both Perth and Kinross remained stagnant throughout the month.

The net balance was noticeably less positive than in March and April, in line with the more measured overall price gains seen across the country.

Despite this, there were still three local authorities where prices hit new market highs, namely in areas such as Highland, Renfrewshire and East Ayrshire.

Meanwhile, Dumfries and Galloway and Glasgow showed the most consistent recovery story, having increased for five straight months in a row.

Scott Jack, regional development director at Walker Fraser Steele, said: “Scotland’s residential property market gives us further cause for optimism this month as average home prices increased in May for the third month in a row.

“The market has remained remarkably resilient in recent years given the challenges it has faced but this month’s gain of nearly £600 (0.3%), represents the strongest performance for two years. This is a hat trick of record new house prices over the past three months.

“Our data shows that Scotland’s average house price is now well in excess of £225,000 and comfortably above its earlier peak in September 2023.

“Clearly, Scotland is enjoying an earlier and stronger revival than across most of England and Wales.

“At a local authority level, the market saw increases in 15 areas, and, with the onset of a new Government, we expect market sentiment will further improve.”

He added: “The new Government has already said it is supportive of the existing mortgage guarantee scheme which has been used to good effect in Scotland.

“Confidence will likely be further buoyed as the Bank of England begins to cut its base rate in the coming months. “