House prices in Scotland saw a monthly increase of 2.3% in December, according to the latest Scottish House Price Index from Walker Fraser Steele Chartered Surveyors.

Figures showed this was an average annual increase of 8.5%, which was the highest level of growth since March 2015.

Walker Fraser Steele, which is part of e.surv Chartered Surveyors, revealed the average house price in Scotland climbed to a record £202,170 at the end of December – having exceeding the £200,000 mark for the first time.

By comparison, the average Scottish house price sat at £186,256 at the end of December 2019.

Walker Fraser Steele business development manager, Alan Penman, said the new record follows a “year of extraordinary growth” in the Scottish market.
 
“The increase in the threshold for the Land and Buildings Transaction Tax (LBTT) played a key role in stimulating the market over 2020,” Penman highlighted.

“The average number of monthly property transactions in 2020 doubled since the measure was introduced in July, though the easing of coronavirus restrictions may also have played an important part in the increase in activity.
 
“It’s also worth noting that the economic effects of coronavirus have not been felt equally and while many Scottish households have struggled financially, some have been able to use the pandemic to bolster their savings. Working from home while cutting out the costs of commuting and socialising has provided an unexpected opportunity for some to save towards a deposit for a property.
 
“These buyers have also benefited from very low interest rates, which have encouraged many to enter the property market, while also disincentivising saving. The result of this cumulative stimulus has been a record-breaking year for the Scottish property market.”

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