According to property analysis firm, Hometrack (part of Zoopla), Glasgow is currently the top performing UK city for house price rises. Property values in the Scottish city have risen by 7.9% year-on-year, taking the average cost of a home to £122,800. So while the value of property is rising, this average cost still makes Glasgow the second cheapest city to live in the UK, falling just after Liverpool which boasts an average property value of £118,900.
In second place for house price rises is the capital, Edinburgh, at 7.6% year-on-year. Despite slower growth rates in England, the figures reveal that the whole of the UK property market has had a strong 2017, and is gearing up for an exciting 2018. The average value of a home in the 20 cities analysed has risen by 6.3% over the past year – up from 4.9% this time last year.
So why is this happening, and is it good news…? Richard Donnell, Insight Director at Hometrack, explained: “In Glasgow, Edinburgh […] affordability is less of a barrier than in London and the south east, particularly for first time buyers, and with mortgage rates remaining low this is helping to stimulate demand and increase activity in these markets.”
Aberdeen is the anomaly for Scotland’s cities and comes bottom of the table, with values slipping 3.7% over the past year. This decline is likely to reflect the current health of the North Sea oil industry, which is a significant driver of house prices in the city.
Hometrack is optimistic about the state of the property market going into 2018 and anticipates further price growth, which will be driven by the continued recovery of regional cities.