Price rise boosts for Scotland property market

By Leah Simpson
Posted: 2010/05/05

SCOTLAND's housing market has received a boost with new figures showing a steady rise in prices over the past year.

The number of property sales soared by almost 25 per cent at the start of the year as £2billion worth of homes were sold between January and March.

As recovery from the recession begins, new quarterly figures from the Registers of Scotland found that the average price of a home has risen by 5.4 per cent over the past 12 months.

The rise came despite a drop in the average cost of a home in Scotland in the first three months of this year, while estate agents say prices will level out over the rest of the year.

Experts have predicted that Scotland's recovery will not be affected by any post-election slump in the UK housing market.

Tony Perriam, residential sales director at Retties, said: "There is a feeling within Scotland that north of the Border we are to a degree insulated from change in government at Westminster, at least in the short term.

While UK house prices may well drop after the election, the consensus here is that whatever the complexion of the new government, there will be no immediate impact on either prices or the volume of sales in Scotland."

The Registers of Scotland said 14,662 properties were sold between January and March, compared with 11,799 over the same period in 2009. The average property price rose to £147,854, with flats showing the largest jump, up 7 per cent to £114,444.

A spokesman for Edinburgh Solicitors Property Centre said: "We are seeing steady growth, but nowhere near the figures of pre-credit crunch days."