Scotland’s pandemic property boom shows no sign of slowing with house prices continuing to climb faster than the rest of the UK.
Prices rose 9 per cent last month compared with July 2020, according to the Halifax House Price Index. This was 1.4 percentage points higher than Britain as a whole, where a stamp duty holiday was still in place to encourage buyers.
The figures demonstrate that Scotland had enough buyer momentum to see off any dip in demand caused by the ending of the Land and Buildings Transaction Tax in March.
June was the busiest month across the UK for mortgage completions since 2008. Last month Halifax reported average homes in Scotland had risen £1,500 each month during the first year of the Covid-19 pandemic. According to the banking group, the cost of the average house in Scotland now stands at £184,933 compared with a UK average of £261,221.
Separately, the Edinburgh Solicitors Property Centre said it took just 14 days to sell homes in the capital, Lothians, Fife and the Borders, eight days faster than 2020. Prices were up too, with the average property achieving 5.3 per cent above the Home Report valuation.
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Speaking of the UK as a whole, Russell Galley, Halifax managing director, said: “This has been fuelled both by the ‘race for space’ and the time-limited stamp duty break. Latest industry figures show instructions for sale are falling and estate agents are experiencing a drop in their available stock.
“This general lack of supply should help to support prices in the near-term, as will the exceptionally low cost of borrowing and continued strong customer demand.
“Overall, assuming a continuation of recent economic trends, we expect the housing market to remain solid over the next few months, with annual price growth continuing to slow but remaining well into positive territory by the end of the year.”
While houses with gardens were popular with families cooped up during lockdown, those with outdoor spaces who didn’t move spent an average of £192 sprucing up their green space, the Bank of Scotland said.
The demand for new garden furniture, outdoor lighting, barbecues, lawn mowers and garden tools caused shortages, with Ikea saying they were unable to keep pace due to rising manufacturing prices in China.
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The Bank of Scotland’s s survey found that, despite their significant investment, two in five home owners didn’t know if their new accessories were covered by their home insurance.
Tracey Ford, 47, a vocal coach and fitness instructor from Johnstone in Renfrewshire, spent £2,500 on her garden over four months. She said: “I just started buying bits and pieces – then thought why not and just went for it with my wee bar. Although I’m looking forward to actually having more friends and family round to make the most of it, we’ve been lucky to have some great weather so it definitely feels like the investment has been worth it.”
