Annual house price growth in Scotland accelerated to 8.2% in February, according to the latest Walker Fraser Steele Acadata House Price Index (Scotland).

The latest rate of growth reflected a jump from 7.7% in January.

Walker Fraser Steele also reported a monthly jump of 1.5% in the average Scottish house price, to take the latest average figure to £218,702 – a price £16,600 higher than at the same time last year.

According to the latest index, private annual rental growth is at its highest rate in Scotland since records began, which Walker Fraser Steele suggested is encouraging buy-to-let investment.

“As a piece of context, in February this year, all the regions in England and Wales established new record average house price levels, but it is fair to say that the Scottish property market has robustly withstood one of the most seismic events in living memory in the past couple of years,” commented Walker Fraser Steele regional development director, Scott Jack.

“The reasons for this strong performance remain constant across the UK. We are still seeing the results of people choosing to change the way in which they work and where they choose to do this. While inflation and interest rates are rising, albeit it at different paces, we still enjoy relatively low borrowing costs. The supply of desirable property remains constrained so there is a lot of competition for the most desirable property.

“It seems that the pandemic’s impact on our ability to spend, which includes disposable income for socialising and holidays, has meant people have saved for more fundamental things such as a house purchase.

“Also, the rise in house prices during the period means that existing homeowners have benefitted from an increase in the equity in their homes meaning they can move up the ladder.”

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