Perth has witnessed the highest house price growth in Scotland, according to figures released by the Bank of Scotland.
The Fair City has undergone a substantial growth of 27% over the past five years, with Dundee lying just behind with a 25% increase in average prices.
Anne Begg, manager of Perth Solicitors Property Centre (PSPC), revealed that houses valued up to £250,000 are selling “very quickly” in Perth and Kinross.
The statistics, which are based on the annual Bank of Scotland affordable cities review, also show that Perth recorded the biggest house price rise of any Scottish city over the past decade with a gain of 31% between 2007 and 2017, compared to the UK cities average of 21%.
It also lies third in a table of affordable cities in Scotland, using a price to earnings ratio.
The review puts the affordability of homes in Scottish cities at its worst level since 2009. Stirling remains the most affordable city for Scottish homebuyers and has also regained the UK top spot after falling to second place last year.
Dundee, Perth, Aberdeen and Inverness make up the top five least affordable cities in Scotland.
Anne Begg, manager of Perth Solicitors Property Centre (PSPC), said the statistics do not reflect the entire market, but stressed that properties for sale up to £250,000 are bought occasionally within a few hours, with the majority meeting their home report value.
“Some exceed that value, especially in family friendly areas of Perth and Perthshire,” she said.
“In terms of new properties coming on to our books, insertions are on a par with this time last year, a trend which will hopefully continue as we approach spring.
“Looking back over the last decade, it’s also a decent picture.”
Lynne Hill, manager of Tayside Solicitors Property Centre (TSPC), commented: “The increase in average prices will largely have been driven by increased realised prices of houses in hot spots like Broughty Ferry where schools have a large impact on prices people are prepared to pay.”
The Bank of Scotland claim that the average Scottish city house price has risen by almost 3% — from £181,061 in 2016 to £186,002 in 2017. They suggest this has resulted in average home affordability in Scotland’s cities “worsening” in the last 12 months from 5.2 to 5.3 times gross average earnings — the fourth successive annual decline in home affordability.
