GSPC: West of Scotland house prices up 3.1 per cent

House prices in the west of Scotland have picked up over the past three months with the overall average rising by 3.1 per cent over the year, according to the latest findings from the GSPC.

GSPC has published its quarterly report for Q2 2016, with statistics showing that the upward price trend which began in 2013 is continuing, albeit at a tentative pace. This is the third quarter in a row that annual house price inflation has been positive.

The pattern of decreasing selling times also continues and is now down by 28 per cent compared to the same quarter of 2015 - with houses now taking on average 55 days to sell, the lowest figure for eight years.

Professor Gwilym Pryce from Sheffield University, who analysed the GSPC data, said: “Prices are now more than double what they were at the start of 1991 when the GSPC index began. However, they remain 9 per cent below their peak during the height of the boom in 2007.

“Of course, it is worth bearing in mind the Q2 results largely came in ahead of the UK’s decision to leave the EU. The outlook for house prices will be somewhat uncertain given the unfolding political and economic ramifications of Brexit.”

He added, “As it stands, there have been no immediate changes to the interest rate following the result of the EU Referendum. The Bank of England’s Monetary Policy Committee meets in mid-July and may consider cutting interest rates in order to boost domestic demand and alleviate mortgage costs in what is likely to be a period of lower economic growth.”

Austin Lafferty, director of the GSPC, said: “Looking at a local level, Glasgow’s annual house price change is also positive but is slightly more subdued at 1.4 per cent compared with the west of Scotland as a whole. In outlying local authorities prices rose more strongly at 4.4 per cent.”

“However, the statistics do show that while there are temporary quarterly differences between Glasgow and the surrounding areas, the general trend has been very similar, so this difference in price change is likely to be fleeting.”