THE average house price in Scotland has risen by 0.6% to £155,000, the lowest rise across the UK according to official figures.
The average UK house price hit a new peak of £239,000 in August after increasing by 2.5% annually. House prices were £6000 higher typically than in August 2019.
One economist commenting on the figures said most of the price gains seen since the market reopened are likely to be wiped out in the 12 months ahead as job losses and tougher mortgage lending conditions bite.
Average property values increased annually by 2.8% in England to reach £256,000, by 2.7% in Wales to £173,000 and by 3% in Northern Ireland to £141,000.
The Office for National Statistics (ONS), which released the figures jointly with the Land Registry, said the price data in August will mainly reflect sales agreed before a temporary stamp duty cut was introduced.
READ MORE: Figures reveal average UK house prices hit a new high in July
The market was effectively put on hold due to coronavirus-related measures and transactions fell sharply in April before increasing once more.
The figures were released as HM Revenue and Customs (HMRC) data showed 98,010 home sales took place across the UK in September – broadly in line with the same month in 2019.
House sales in September jumped by more than a fifth (21.3%) compared with August.
HMRC said the jump is likely due to continued release of pent-up demand within the market since the start of lockdown in March, and the early impacts from the temporarily increased “nil rate” band of stamp duty.
Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said: “The current surge in prices has unstable foundations.
“It partly reflects well-off buyers seeking to buy bigger homes in response to the pandemic, using some of the savings from commuting less and consuming fewer services. This wave of demand likely will be sated soon.”
Tombs added that demand from first-time buyers will be hobbled going forward and “it remains likely that most of the increase in prices since the housing market reopened in May will be reversed over the course of the next 12 months.”
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