Scottish house prices see biggest rise in 14 years
- Published
Figures show the price of detached homes in the UK rising faster than flats
The price of homes in Scotland rose in the year to March by nearly 11%, according to official figures.
Data from the Office for National Statistics, external shows the average house was being sold for nearly £167,000.
Pent-up demand after lockdowns has helped fuel the highest price inflation for 14 years - up from 8.3% in the year to February.
There has been even faster price growth in the north of England, but much less in London.
In Scotland, the number of transactions in the first three months of the year was up by nearly half on the start of last year.
The Office for National Statistics (ONS) said the pandemic may have caused buyers to "reassess" their housing preferences, with the average price of detached properties in the UK rising faster than flats.
This may reflect buyers seeking more space and garden, with less need to be near the office if they intend to continue working from home.
Those who have continued to earn have also been saving.
The rise in transactions in Scotland is boosting work for estate agents, with one telling BBC Scotland the market was at "fever pitch" for the first time since 2008.
John McIntosh, from Falkirk Homes, said: "The 'wow factor' house is getting snapped up in a day or so.
"We can put a house up for sale, we can have 20 people in the next day and from that there'll be 10 offers."
However, the fast property market and lack of housing supply is reportedly causing problems for buyers.
Gavin and Laura Lawson told BBC Radio's Good Morning Scotland they wanted to move from East Renfrewshire to Ayr to be nearer friends and family.
Gavin Lawson said they had missed out on properties despite offering well above the Home Report value
Their home sold quickly, but they have so far struggled to buy a new one with a lack of houses coming on to the market.
Mr Lawson said all the properties they had seen were going to closing dates and selling quickly.
"We've put in a couple of offers that we thought had been quite substantially above the Home Report value, but we've missed out, so far," he said.
"We've got our eyes open, but there is just very little coming on at the moment. We thought we were going to be in a strong position... We're ready to go to offer and we can move on that as quickly as anyone needs to.
"But, actually, it looks like it doesn't matter at the moment because the supply of properties is not reaching the demand from potential purchasers."
House prices in Scotland increased by 10.6% over the year to March 2021, compared with a rise of 10.2 % in England, 11% in Wales and 6% in Northern Ireland.
Average house prices in England are now at a record level of £275,000, according to the ONS.
Northern Ireland remains the cheapest UK country to purchase a property in, with an average house price of £149,000.
- Published19 May 2021