Scottish house prices rising faster on the islands

Scottish house prices rising faster on the islands

Portree, Isle of Skye

House prices in Scotland’s island regions have outpaced those in the rest of the country, with a 30% increase to £182,000 since 2018, according to Registers of Scotland.

This compares to a 23% rise on the mainland, where the median now stands at £185,000, its report states.

While the overall island median remains slightly below the Scottish average, there are significant variations between regions. Prices range from £135,000 in Shetland Outer Islands to £249,000 in Highland Islands.



Notably there is a higher proportion of cash sales in the islands (57%) compared to the mainland (37%), indicating a different buyer demographic and potentially less reliance on mortgage finance. Cash sales range from 39% in Shetland Mainland to 75% in Arran, Bute and the Cumbraes.

Scottish house prices rising faster on the islands

Scottish island regions map (credit: National Records of Scotland)

The report also delves into specific property types. In remote small towns, 15% of sales were in the island regions, with a median price matching the mainland at £150,000. However, in remote rural areas, where 22% of sales were on islands, the median island price of £195,000 was lower than the mainland’s £220,000.

Housing Minister Paul McLennan said: “Good quality housing is essential to attract and retain people in island communities.

“Since April 2016 the Scottish Government has supported the delivery of more than 1,100 affordable homes on islands across Scotland and our commitment to deliver 110,000 affordable homes by 2032 – at least 10% of which will be in our rural and island communities – continues to be supported by our Rural and Islands Housing Action Plan.

“The Rural Affordable Homes for Key Workers Fund and Rural and Islands Housing Fund are key elements of our approach to addressing specific rural and islands housing issues where they arise.

“We have also delivered secondary legislation enabling local authorities to make decisions about the council tax treatment of second homes to determine the balance in the use of housing to meet local needs. I have encouraged councils to fully consider the role that second homes have in their communities and to use these additional powers where required.”

Jennifer Henderson, keeper of the Registers of Scotland, added: “This new report brings valuable insight to property prices across the Scottish island regions.

“It demonstrates Registers of Scotland’s commitment to providing innovative and accessible land and property data that is valuable to the people, businesses, and policymakers of Scotland.”

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