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.'