Cost of buying a property in Scotland reaches all-time high

The price of the average home in Scotland is at a record level with it costing more than £200,000 for the first time.

Cost of buying a property in Scotland reaches all-time high iStock
For sale: Cost of buying at all time high.

The housing market across the UK has continued to perform well with an annual increase of 13% on the price of a property.

That’s according to the Halifax House Price Index, and figures show Scotland to be one of the most affordable places to purchase a home, where the average home costs £201,549.

Meanwhile, the annual rate of house price inflation is now 9.9%, up from 8.5% the previous month.

Graham Blair, mortgages director, Bank of Scotland, said: “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 topped the table as the most affordable place to purchase a property with an average price of £187,833.

Across the UK the average price for a property is £294,845.

Russel Galley, managing director of Halifax, said we should expect the market at some point to slow down: “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.

“Of course, the housing market will not remain immune from the challenging economic environment. But for now it continues to demonstrate – as it has done over the last couple of years – the unique combination of factors impacting prices.

“So while it may come later than previously anticipated, a slowing of house price growth should still be expected in the months ahead.”