On average, house prices across Scotland rose by 8.8 per cent over the last year, more than the UK average of 6.2 per cent. The average Scottish home now costs £207,778, an increase of £16,761 on 2020’s figure of £191,017.
Motherwell, not only witnessed the highest percentage increase, but also the largest increase in cash terms at £26,103, rising from £151,105 to £177,118. The town was one of two in Scotland to be amongst the UK’s 20 biggest house price increases.
With Motherwell ranking 7th in the UK overall, the other entrant was Hamilton at number 20. The South Lanarkshire town’s average house price rose by 13.7 per cent in the last 12 months, with the typical home now costing £159,176, an increase of £19,225.
Overall, it has been a positive year for homeowners in Scotland hoping to see the value of their property rising, with more areas seeing higher rates of growth and fewer seeing falls. In 2020, just two towns saw prices rise above the UK average, while this year there have been 15. Conversely, last year seven towns saw prices fall back, compared to just two this year.
Graham Blair, Mortgages Director, Bank of Scotland, said: “Scottish house prices have enjoyed another bumper year, with growth outperforming the UK average and properties in almost every town now worth more than 12 months ago.
“The feedback we’re getting from customers matches what we see in the data. Prolonged working from home has influenced where people want to live and the type of property they want to own. So while our major cities continue to be attractive, with commuting now less of a priority, areas that offer more space and better affordability have experienced increasing demand from buyers."
Many towns within easy reach of the key cities experienced some of the biggest rises, with both Paisley and Livingston outperforming their more metropolitan neighbours. The most expensive place to buy in Scotland remains Edinburgh. The capital now has an average house price of £293,406, up £19,160 (7 per cent) on last year.
Across the UK, Taunton in Somerset has been identified as the UK’s top house price hotspot in 2021, with property values there increasing at more than three times the national average rate.
Over the past year, average house prices in Taunton have increased by more than a fifth (21.8 per cent).
In cash terms, the average house price in Taunton, which has a range of independent shops and is surrounded by attractive countryside including the Quantock Hills, rose by £56,546 to £315,759.
With its good links to the M4 and rural surroundings, the Wiltshire town of Chippenham has also benefited from the “race for space” among buyers, with the biggest increase in house prices in cash terms. Prices there rose to an average of £381,181 – marking an increase of £58,322 since 2020.
Nowhere in London appeared in the top 20 hotspots list. The area of the capital with the highest growth was Enfield, where the average house price increased by 6.8 per cent to £512,135.