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SCOTTISH house prices are generally increasing, fitting in with a trend across the rest of the UK which has seen the average price of homes in major cities increase by nearly £90,000 over the past decade.

A Zoopla analysis found the average house price across the UK’s 20 biggest cities has increased by £89,987 across the period – or around 54%.

This is a bigger increase than the average house price uplift across the whole of the UK over the past 10 years, at £62,218.

Average Glasgow house prices have surged by £16,087 over the past decade while the figure in Edinburgh is higher at £61,693.

Average London house prices have risen by £204,400 over the past decade.

The typical house price across the cities covered by the index is now £257,200, while in London it is £479,000.

But city house price growth has varied widely over the past decade. House prices in Aberdeen are lower compared with 10 years ago, a decrease of £1164 (0.7%), while Belfast saw a fall of £4896 (3.4%).

Zoopla said Aberdeen was affected by the oil price crash post-2015, and Belfast, having registered six years of house price falls between 2007 and 2013, has been slower than other major cities to see a sustained recovery in house price growth.

Looking ahead, Zoopla expects city house prices to increase by 3% over 2020 as a level of pent-up demand returns to the market following the General Election result.

Richard Donnell, research and insight director at Zoopla, said: “The election result provides an element of certainty for households looking ahead to 2020, but the result changes very little in terms of housing market fundamentals.

“While we expect some pent-up demand to return to the market in (the first quarter of) 2020, the affordability of housing across the country will dictate the level to which prices will increase in 2020.

“Lower mortgage rates have already been reflected in higher house prices, which means house prices are set to rise at a lower rate in future – more in line with average earnings. We expect UK city house prices to increase by 3% over 2020.”

By Emer O’Toole

Source: The National

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