Your Scotland Property Market Update: May 2021
Last updated: 2.59pm, Wednesday 26th May 2021
House Prices in Scotland are rising faster at 10.6% than the UK average of 10.2%.
Our main focus investment area Inverclyde, the annual increase was 13.9%.
House Prices in Scotland are rising faster at 10.6% than the UK average of 10.2%
Our main focus investment area, Inverclyde, the annual increase was 3rd highest at 13.9%
Glasgow City Council area was 12.8%.
In our March Market Update, we shared how property was at an all 10 year high in Glasgow and the UK, http://allianceproperty-group.co.uk/items/news-section/March-2021-Market-and-Property-Price-Update- (click link to open).
There is no sign of that changing.
We look at some of the detail in the UK economy and house price market in Scotland and Glasgow.
UK Economy
Things are looking good for the UK.......
The Bank of England forecasts strong COVID recovery with biggest economic bounce-back since WWII.
The Bank signals it is not too concerned about a spike in inflation ahead and its COVID crisis support will be maintained.
The Bank of England has upgraded its growth forecast for the coronavirus-hit UK economy and signalled it will not raise interest rates in the near term - despite seeing a looming spike in inflation ahead.
The latest meeting of the central bank's interest rate-setting committee left policy unchanged, with rates remaining at their COVID-19 crisis low of 0.1% as analysts had widely expected.
The Bank said it now saw growth of 7.25% during 2021, which would be the strongest since 1941.
That is up from the 5% growth previously forecast.
Scotland House Price Growth
The annual price change of a property in Scotland was 10.6%.
Scotland house prices were growing faster than the UK annual rate of 10.2% in the year to March 2021.
Our main focus investment area, Inverclyde, annual increase was 3rd highest at 13.9%.
March 2021 monthly price change of a property in Scotland was 2.8%.
Scotland house prices increased by 10.6% in the year to March 2021, up from an increase of 8.3% in year to February 2021.
Annual House Price Growth Chart for Scotland since March 2017
Chart from UK Government Land Registry.
Regional House Price Growth
Prices increased over the year in 31 out of 32 local authority areas.
The largest growth was in South Ayrshire (not including Orkney Islands) where prices increased by 16.0% in the year to March 2021 to £153,000.
The lowest annual growth for the year ending March 2021 was recorded in City of Aberdeen where average prices decreased over the year by 0.6% to £140,000.
Chart from UK Government Land Registry
Summary:
The easing of lockdowns will cause a natural fall in demand as people are able to see family and enjoy amenities that have been shut for more than a year.
At the same time, supply constraints will continue underpin pricing.
The lack of on market property supply is expected to continue.
97% of the properties Alliance Property Groups properties we sell are off market that give below market value with strong yields and in the right areas for growth.
We have been focusing mainly in Inverclyde area in the last 24 months as were aware of the potential, increasing demand and continued infrastructure and employment growth in the area.
Inverclyde has enjoyed a 13.9% increase in the last year.
Thank you for reading.