Yahoo Finance Scottish home sellers buck the trend by raising asking prices during downturn
Scotland’s property market is bucking the broader housing downturn, with sellers in the country raising their asking prices despite falls elsewhere.
Four of the top 10 local authorities where sellers have raised asking prices the most since values started falling last year were in Scotland, according to analysis by Rightmove.
Home sellers in West Lothian on the outskirts of Edinburgh have raised their asking prices by the biggest margin since values began falling nationally from August 2022 onwards.
West Lothian sellers have increased their asking prices by 7pc on average to £210,078, according to Rightmove.
Sellers in Inverclyde outside of Glasgow, Falkirk and Aberdeenshire have also increased their asking prices by 6pc on average.
Analysts said Scottish properties were outperforming the rest of the UK because homes there are more affordable, meaning rising interest rates have less of an impact on demand.
The average home in Scotland costs 4.5 times local earnings, according to Nationwide, compared to 6.4 times earnings across the UK. It makes Scotland one of the most affordable regions in Great Britain.
West Lothian, Falkirk and Inverclyde are also popular commuter towns for Glasgow and Edinburgh, providing a steady stream of interested buyers.
Faisal Choudhry, director of Scottish residential research at Savills, said homes in West Lothian cost nearly a third less than those in neighbouring Edinburgh.
He said: “The value gap will still be attracting new buyers.”
Cameron Ewer, also of Savills, said the “race for space” that began during the pandemic was also still having an impact on the Scottish property market. 40pc of buyers are people moving over the border from England to seek out more space, he said.
Gary Moyse, of ReMax estate agents in Aberdeenshire, said buyers are relocating from the likes of Yorkshire, Somerset and Devon because they can get more land for their money.
House prices across the UK have dropped by 5.5pc, or £15,194, since the market peaked in August 2022, according to Nationwide data. Prices have tumbled as surging interest rates have made it more expensive to borrow.
The average rate on a two-year fixed-rate mortgage is now just under 6pc, according to Moneyfacts – more than double the average 2.29pc rate offered in November 2021 before the Bank of England began raising interest rates.
Despite asking prices rising north of the border while falling elsewhere, many Scottish homes remain cheaper than the rest of the UK.
The average selling price for a house across the UK was £258,557 in November – almost £50,000 more than sellers wanted for a West Lothian property even after a 7pc rise in asking prices.
John Boyle, director of research at Rettie estate agents, said that housing transactions in Scotland are down by no more than 10pc this year.
This is a much smaller drop than across the rest of the UK. Nationally, transactions are down by 23pc according to HMRC data.
Rettie is forecasting 1.5pc house price growth in Scotland in 2024 and a 4pc increase in transactions.
Rightmove’s findings came as property company Colliers named Edinburgh and Glasgow the best cities to buy a property in.
Colliers ranked cities across the UK based on metrics such as local economies, liveability, rental yields and average energy efficiency ratings of properties to find what it believes are the best cities for both property investors and prospective homeowners.
Andrew White, head of residential at Colliers, said: “Edinburgh has once again secured the top spot thanks to its quality housing stock, diverse economy as well as residents reporting satisfaction with living in the area.
“The city also boasts a good range of tourist attractions, access to nature as well as good earning potential for residents.”
