Scotland’s property boom as the pandemic pushes prices up by £43k

Scotland has seen an extraordinary surge in property prices since the pandemic, with average values rising by £43,381 in less than four years, according to a leading estate agency.

DJ Alexander Ltd has analysed the latest data and found that between March 2020 and November 2023, average house prices in Scotland rose from £150,625 to £194,006.

David Alexander, the firm’s chief executive, said: “The last few years since the start of the pandemic have witnessed an unparalleled growth in house prices across Scotland.

“For average prices to increase by £43,381 in less than four years is very unusual and there is every sign that this trend will continue in the coming year.”

‘This is an unusually robust performance’

He continued: “In certain parts of Scotland obviously we have had lower price increases but overall, this is an unusually robust performance in a market that was expected to be sluggish at best.

“Edinburgh and the surrounding areas, East Renfrewshire and East Dunbartonshire have all experienced very strong price growth.

“Equally Angus, Perthshire, the Highlands, and the West coast have all seen substantial price rises.”

‘The numbers become almost unbelievable’

Mr Alexander said: “But the numbers become almost unbelievable when you look at the increase in the price of detached homes.

“Detached homes in Edinburgh have now broken through the £800,000 barrier for the first time ever and now cost £215,370 more than they did in March 2020.

“With increases in the price of detached homes in the city rising by nearly £5,000 for every month of the last forty-five, this is a clear sign that Edinburgh’s property market is on fire.”

He explained that as prices have risen in Edinburgh, buyers have sought homes in the immediate areas around the capital.

This ripple effect is increasing prices in East Lothian, West Lothian, Midlothian, and Fife.

The ripple is also spreading to areas just outside Glasgow where high six figure increases have occurred in the detached homes market.

‘We are creating a two-tier property market’

Mr Alexander warned: “The risk is that we are creating a two-tier property market between some parts of Scotland and the rest.

“Where prices are rising this steeply it could mean that some of these areas may become simply unaffordable to a large part of the population.

“However, this trend may slow as property and personal taxes continue to soar but there is little doubt that parts of Scotland’s property market are experiencing something of a boom at present.”

He added: “Market forces usually play their part in controlling prices, but for the moment there seems to be an alternative economy operating in parts of Scotland which are boosting property prices to new highs.

“The coming year will be crucial in establishing whether this is a long-term trend or a momentary blip.”

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