House prices resume upward trend in May

Average house prices in Scotland increased by 5.4% between April and May 2021, reversing a 4.1% fall in the previous month, according to provisional statistics from the UK house price index released by Registers of Scotland.

The overall average figure of £171,448 was also 12.1% higher than in May 2020, when the market was significantly affected by the first coronavirus lockdown.

Across the UK as a whole, the average price of £254,624 was up 0.9% on the previous month and up 10.0% on May 2020.

All 32 local authority areas in Scotland showed a year-on-year increase. The largest mainland increase  (Orkney and Shetland both saw rises of more than 30%) was in Inverclyde (20.2%), followed by East Dunbartonshire (18.9%), Argyll & Bute (17.8%) andEast Renfrewshire (16.4%). The smallest increase was recorded in Angus (1.7%), followed by Moray (2.1%) and City of Aberdeen (2.6%).

The provisional sales volume in Scotland in March 2021 – 11,968 residential sales – was the highest number of transactions recorded in March since 2007 (when compared with both original provisional estimates and the final revised volume figures). In addition to a strong housing market, the rise in sales volumes is likely to have been influenced by both the temporary increase of the nil band of the land and buildings transaction tax (LBTT) coming to an end on 31 March 2021 and changes to the fees charged by Registers of Scotland coming into effect from 1 April 2021.

Commenting on the figures in Scotland, accountable officer Janet Egdell said: "Prices continue their trend upwards in May, and the number of transactions has reverted to a more normal pattern in the first couple of months of this financial year.  Volumes for the whole of last financial year recovered significantly in the second half, to reach 94% of the 2019-20 levels."

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