Long term, the outlook for the housing market looks favourable.
House prices in Scotland increased by 4% in June, according to the Scotland House Price Index published by YourMove and Acadata.
The study shows a 4% spike in property prices since May, representing the largest annual growth rate since May 2015.
Property prices measured by the index dived by -9% between March and June in the run-up to the UK’s referendum on EU membership.
While monthly house prices were down compared to May, the average price of property was £170,404 in June, still 0.97% higher compared to the start of the year.
The introduction of the 3% tax increase on second homes in April means house prices and transaction figures remain skewed in Q2.
This impact was felt most acutely in March’s transaction figures. Transactions in that month were almost 100% higher than February 2016 – a peak not seen since November 2007.
Christine Campbell, Your Move managing director in Scotland, said: “June was the first month that the spike in house prices as a result of the 2015 LBTT changes dropped out of the annual figures. This previous distortion in property prices goes some way to explaining the seemingly significant annual price increase we saw this June.
“Whilst market sentiment remains strong, with continued demand from both buyers and sellers, it will be interesting to watch how potential Brexit implications play into transaction and price figures over the coming months.
“Long term, the outlook for the housing market looks favourable. However, with housing demand continuing to vastly outstrip supply, it is important that we see a concerted focus on building new property to ensure there are enough homes for potential buyers across the country.”
