Average Scots house prices ‘up by more than 10 per cent’

The average cost of a home in May was £180,892 following a 10.3 per cent increase on the same month in 2014 — twice the annual growth seen in England and Wales.

But that was down 2.1 per cent on April’s figure — the largest decrease experienced for nearly six years in the house price index from Your Move/Acadata.

Report authors said the impact of the land and buildings transaction tax (LBTT) brought in on April 1 is “still reverberating” around the property market.

They also said political changes during the month brought about by the general election outcome resulted in uncertainty for buyers and sellers.

The number of homes sold in May was also down 10 per cent on the previous month and 4 per cent lower than last year.

The report showed a 15.2 per cent annual increase in Glasgow, taking the average home price there to £146,286 — a new record.

Edinburgh remains the most expensive local authority area, with the average home in the capital costing £266,281.

Christine Campbell, Your Move managing director in Scotland, said: “The sentiment from buyers in our branches is upbeat as the stability of the housing recovery shines through.

“There is no denying that the recent tax turbulence has affected property prices in the shorter term, with the latest monthly dip testament to further shockwaves of the LBTT, as the market continues to absorb the change.”

Ms Campbell added that since the new LBTT regime was enforced, there has been only one million-pound home sold in Scotland in two months, which is “reining back current measures of growth”.

John Boyle, of Rettie and Co, said: “Over the course of the year, I would expect the price to settle down further, perhaps growth of only five to six per cent by the year end.”