Residential property prices in Scotland rose in June and the signs are that values will increase further as demand continues to exceed supply, new figures show.
Responding to latest Scottish property price data which shows that house prices have increased of late, industry body Homes for Scotland said that such upward pressure would continue as long as demand continued to outstrip supply, pushing home ownership beyond the grasp of many desperately trying to get onto the housing ladder.
“Given that the single most effective way to address affordability concerns is to increase the supply of new homes of all tenures, we are calling on the Scottish government to prioritise housing when allocating its recently announced infrastructure funding,” said Nicola Barclay, chief executive, Homes for Scotland.
The latest Scotland House Price Index published by YourMove and Acadata reveals that the average price of a home north of the border rose by 4% in June, representing the largest annual growth rate since May 2015.
According to the data, the average property in Scotland was worth £170,404 in June, with long term outlook for the housing market looking favourable for investors as demand continues to vastly outstrip supply, according to Christine Campbell, Your Move managing director in Scotland.
She commented: “June was the first month that the spike in house prices as a result of the 2015 LBTT changes dropped out of the annual figures. This previous distortion in property prices goes some way to explaining the seemingly significant annual price increase we saw this June.
“Whilst market sentiment remains strong, with continued demand from both buyers and sellers, it will be interesting to watch how potential Brexit implications play into transaction and price figures over the coming months.”
“With housing demand continuing to vastly outstrip supply, it is important that we see a concerted focus on building new property to ensure there are enough homes for potential buyers across the country,’ she added.