Bank of Scotland - 2nd Quarter Scottish House Price Index
- House prices in Scotland in the second quarter of 2003 were 6.7% higher than in the first quarter of 2003. This compared with a 3.3% increase for the UK as a whole on the same basis.
- For the first time the average house prices in Glasgow has joined Edinburgh in the £100,000 plus price bracket. House prices in Ayr are just below the £100,000 threshold at £98,000. The average price of a house in Scotland in the second quarter of 2003 was £77,820 compared to the UK average of £129,443.
- The annual rate of house price inflation in Scotland is now 17.3%, below the UK average of 21.9%. The average price in Scotland is 60% of the UK average.
- Scotland has the most affordable housing in the UK. The average house price in Scotland stands at 3.1 times average earnings, below the long-term average for Scotland of 3.4. The ratio of house prices to average earnings for Scotland compares with 4.7 for the UK.
- The average home-buyer in Scotland now spends 12% of their gross annual income on mortgage payments compared to a peak of 20.2% in 2000. (UK Q2 average is 14.3%).
- There has been a mixed picture across the Scottish housing market. Prices have risen most strongly over the past year in Dumfries & Galloway (48%), Fife (35%) and Lothian (27%). Demand has been much weaker in the Borders with average selling prices in the second quarter 2003 a more modest 5% higher than in the same period last year.
- Prices remain highest in Edinburgh with an average property price of almost £161,000, well above the UK average house price of £130,000.
Commenting on the housing market in Scotland, Martin Ellis, Bank of Scotland's Chief Economist, said:
"House prices in Scotland in the second quarter of 2003 were 6.7% higher than in the first quarter of 2003 reflecting an upturn in both the housing market and economic sentiment in the country. Confidence is rising in the economy as a whole. Low interest rates and the housing market are providing a good foundation for renewed economic confidence."
"Housing in Scotland remains the most affordable in the UK. The average home-buyer in Scotland now spends just 12% of their gross annual income on mortgage payments compared to a peak of 20.2% in 2000. (UK Q2 average is 14.3%).
The average price in Scotland (£77,820) is now 60 per cent of the UK average. The average house price in Scotland stands at 3.1 times average earnings (UK 4.7), below the long-term average for Scotland of 3.4.
Prices have risen most strongly over the past year in Dumfries & Galloway (48%), Fife (35%) and Lothian (27%). Demand has been weaker in the Borders with average selling prices in the second quarter 2003 a more modest 5% higher than in the same period last year. Average house prices in Glasgow have now broken through the £100,000 barrier - a major milestone. The average price is also over £100,000 in Livingston, Dunfermline and Aberdeen. Prices continue to be highest in Edinburgh with an average property price of £160,967.
The outlook for the Scottish housing market remains very positive with affordability at historically low levels. We expect house prices to continue to rise at a similar pace to that seen during the first six months of the year."