Scotland Only UK Region To Record Positive House Price Growth

House prices fell by 0.9% in June according to the latest Nationwide housing survey.

Prices are 6.3% lower than this time last year and dropped at less than half the rate of the previous month, but remain 4% higher than two years ago.

Scotland is now the only UK region still recording positive house price growth on an annual basis.

House prices were up a marginal 0.6% year-on-year during April - June, but were down a seasonally adjusted 1.8% quarter-on-quarter.

The strongest sub-region within Scotland remains Aberdeenshire & Moray, which has been the case over the last several quarters.


The report states two main factors making house prices in Scotland more resilient than in the rest of the UK. Firstly, mortgage affordability is less stretched in Scotland than elsewhere, as house prices did not increase as markedly during past house price booms. Secondly, Scotland's oil producing regions have benefited from the sharp run-up in the price of oil. This has created particular pockets of strength in sub-regions such as Aberdeenshire.

Commenting on the overall UK picture Fionnuala Earley, Nationwide's Chief Economist, said: "The pace of house price falls slowed significantly in June. House prices fell by 0.9% during the month, less than half of the rate of the 2.5% fall recorded in May.

"Prices in June are now 6.3% lower than this time last year and have fallen 7.3% from their peak last October. The price of a typical house is now £172,415. This is over £13,500 less than it would have cost at the top of the market and over £11,500 less than this time last year.

"However, the strength of house price growth up until last year means that prices are still 4% higher than two years ago and 9% higher than three years ago."

(GK/JM)