House prices in Scotland 'increased by almost 10% in last year'

The UK average saw house prices leap 15.5% - the biggest increase in 19 years.

House prices in Scotland rise almost 10% as UK sees biggest increase in 19 years, ONS figures show iStock

Average house prices in Scotland have increased almost 10% in a year to £193,000, figures have revealed.

Across the UK the average house price leapt by 15.5% annually in July, marking the biggest increase in 19 years, according to official figures.

The percentage increase was around double the rate recorded in June, when the typical property value increased by 7.8% annually.

The Office for National Statistics (ONS) said the inflation rate was the highest recorded since May 2003.

The jump in annual inflation was mainly because of “a base effect” from the falls in prices seen this time last year, as a result of changes in the stamp duty holiday, the report said.

Average UK house prices increased by £6,000 between June and July this year – compared with a fall of £13,000 between the same months last year.

The average UK house price was £292,000 in July 2022, which is £39,000 higher than this time last year.

Average house prices increased over the year in Scotland to £193,000 (9.9%), in England to £312,000 (a 16.4% annual increase), in Wales to £220,000 (17.6%), and in Northern Ireland to £169,000 (9.6%).

Karen Noye, mortgage expert at Quilter, said: “The housing market has so far remained resilient despite the ongoing cost of living crisis.

“While the latest UK inflation data released this morning showed a slight fall to 9.9% last month, a higher peak is still expected to materialise over the coming months and as such the Bank of England is expected to continue hiking interest rates and the current resilience may well falter as a result.

“Coupled with rising interest rates, soaring energy prices will also make buyers more cautious.”

She said that despite the recent energy price cap announcement “many will still feel the squeeze financially and this could put a halt on people’s plans to move home”.

Ms Noye continued: “Whether these ongoing issues translate into a fall in house prices will not be seen for some time yet, though this may well be the case if the winter proves to be as difficult as predicted.”

The report was released as separate figures from the ONS showed that Consumer Prices Index (CPI) inflation reached 9.9% in the year to August, easing from 10.1% the previous month, reflecting a fall in the price of motor fuels.

ONS figures also showed that private rental prices paid by tenants in the UK rose by 3.4% in the 12 months to August 2022, up from 3.3% in the 12 months to July 2022.

Private rental prices increased by 3.4% in England, 2.5% in Wales and 3.6% in Scotland in the 12 months to August.

HTTP_HOST: news.stv.tv ISSET_HTTP_HOST: 1