Properties in Scotland 'at all time high' as new record reached
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Typical properties in Scotland are now worth £18,142 more than this time last year – with a 1.4 per cent increase from last month.
The housing market defied any expectations of a slowdown in June across the UK, with average property prices up 1.8% month-on-month, marking the biggest monthly rise since early 2007 with house prices up by 13.0% annually, marking the highest growth rate on this measure since late 2004, Halifax said.
Across the UK, the average house price in June was a record £294,845.
A slowing of house price growth should still be expected in the months ahead, Halifax said.
Russell Galley, managing director, Halifax, said: “The UK housing market defied any expectations of a slowdown, with average property prices up 1.8% in June, the biggest monthly rise since early 2007.
“This means house prices have now risen every month over the last year, and are up by 6.8% or £18,849 in cash terms so far in 2022, pushing the typical UK house price to another record high of £294,845.
“The supply-demand imbalance continues to be the reason house prices are rising so sharply.
“Demand is still strong – though activity levels have slowed to be in line with pre-Covid averages – while the stock of available properties for sale remains extremely low.
“Property prices so far appear to have been largely insulated from the cost-of-living squeeze.
“This is partly because, right now, the rise in the cost of living is being felt most by people on lower incomes, who are typically less active in buying and selling houses.
“In contrast, higher earners are likely to be able to use extra funds saved during the pandemic, with latest industry data showing that mortgage lending has increased by the highest amount since last September.
“In time though, increased pressure on household budgets from inflation and higher interest rates should weigh more heavily on the housing market, given the impact this has on affordability.”
“While it may come later than previously anticipated, a slowing of house price growth should still be expected in the months ahead.”
Graham Blair, Mortgages Director, Bank of Scotland, added: “Scotland recorded exceptionally strong house price growth during June, with the cost of a typical property rising by almost £3,000. That’s pushed the average house price above £200,000 for the first time ever.
“While such rises are often welcomed by existing home owners, anyone looking to move still faces the challenge of buying into a sellers’ market, while the difficulties facing first time buyers also become more acute.”
“However when compared to many other parts of the UK, Scotland continues to provide some of the most affordable locations in which to buy a property.”
Northern Ireland had the strongest annual house price growth at 15.2%, while Wales also continued to record a strong rate of annual growth, with house prices increasing by 14.3%.