In July, Scottish house prices took a modest dip from record highs, according to the latest House Price Index from Chartered Surveyors, Walker Fraser Steele.
The average house price in Scotland was £223,035, a 0.4% decrease compared to June but a slight 0.3% increase on an annual basis.
This decline comes amid languishing transactions, declining demand for higher-value properties, and mixed performance across local authorities.
Scott Jack, regional development director at Walker Fraser Steele, said: “The housing market contracted in July, thanks to the persistent challenges of rising interest rates, increased cost of living, and affordability pressures. These elements are conspiring to deflate the enthusiasm of prospective buyers, especially those new to the market.”
However, Jack indicated that the tide may be turning. “With the announcement of the first sub-5% fixed-rate mortgage in mid-September, we are hopeful for increased transactions and renewed market confidence towards year-end,” he added.
The overall slowdown in July broke the pattern of slight monthly price increases observed in earlier months. The average price for a property declined by £900, or 0.4%, marking a halt in the upward trend. Despite the dip, the current average home price in Scotland is still the third-highest month on record, pointing to the long-term resilience of the market.
Jack also touched upon the issue of housing supply, particularly given recent reports of builders either slowing down or halting developments. “A limited supply of the right types of property will always lend support to prices in the long run,” he noted.
In July, performance across Scotland’s 32 local authority areas was a mixed bag. Fifteen local authorities reported average prices rising above the levels seen 12 months earlier, while 17 reported declines. This was underscored by the record high prices reported in Glasgow, showcasing that not all sectors and areas are equally affected by economic headwinds.
