Scotland house prices rising faster than UK

House prices in Scotland rising faster than UK

Figures from the Department of Communities and Local Government (DCLG) have shown that property prices in Scotland are rising twice as fast as the rest of the UK. Examining the DCLG's findings, Scottish newspaper the Herald has said August's interest rate rise has failed to dampen buying activity in Scotland. North of the border, house price inflation jumped from 9.3 per cent in July to 12.8 per cent in August. At the same time, UK inflation rose from six per cent to 7.7 per cent.

However, Scotland is cheapest place in the UK to buy a house, with prices averaging at about £145,500. By comparison, the average house price in the UK stands at £197,631. The mix-adjusted average August house price in Scotland was £145,490, compared with England's figure of £205,556, according to the DCLG figures. Howard Archer, from consultancy firm Global Insight, said: 'House prices could well see further marked increases in the very near term, given the current level of mortgage activity.'

House prices up by 0.4% in August

House prices up by 0.4% in August

The average house price in the UK grew by as much as 0.4 per cent in August, with London driving much of the activity, new figures have revealed. It means that growth over the first eight months of the year amounts to 3.9 per cent, according to Hometrack's latest housing survey. Property prices in London grew by 0.9 per cent in August, fuelled by excessive demand and not enough available stock.

However, Hometrack has said that house price growth in the capital cannot be sustained in the medium-term. Richard Donnell, director of research, said: "Whilst the recent rise in interest rates has yet to impact on the market surveys, the sensitivity of the housing market to interest rates means that the London-inspired mini boom of the last eight months is likely to run out of steam over the autumn."

UK is benefiting from buy-to-let

UK is benefiting from buy-to-let, says report Buy-to-let is a force for good in the UK housing market, an industry body has said. According to an academic report for the Association of Residential Letting Agents (Arla), the buy-to-let sector contributes over £30 billion to the British economy every year and has revived the housing market and urban regeneration.

Michael Ball, professor of urban and property economics at the University of Reading's business school, has forecast buy-to-let tenancy growth of between 20,000 and 30,000 every year over the next decade.

The report argued that buy-to-let has injected choice and competition in the private rented sector. Adrian Turner, from Arla, commented: "Arla went out on a limb to launch the modern concept of buy-to-let in September 1996. "Ten years on we are the first to admit that we could never have foreseen the success this was to be for investor landlords, their tenants and the private rented sector."

In related news, Welsh newspaper the Western Mail has said that migrant workers, particularly those from Poland, are providing the main source of activity for the buy-to-let sector in Wales.