House prices in Glasgow have grown faster than anywhere else in the UK, new research has shown.
The latest Hometrack UK Cities House Price Index found the price of the average property in Glasgow has increased by more than five per cent in the past three months, higher than any other UK city.
This is despite a slowdown taking effect in other areas, with house price inflation stalling in London and the South East.
Hometrack’s latest data now predicts the pace property is increasing in value in Scotland will now begin to outstrip that of the UK’s more traditional hotspots.
Richard Donnell, Insight Director at Hometrack, said: “In the absence of adverse economic trends impacting employment and mortgage rates, the near-term outlook is a continued slowdown in London towards mid-single digit growth.
“The slowdown in London being seen across the market is not accounted for by seasonal factors with weaker demand from home owners and investors as supply grows.
“In contrast, northern regional cities will continue to register stable growth rates as households benefit from record low mortgage rates and affordability is attractive.”
Rising house prices in Glasgow have been put down to the city’s low starting point, with the average home costing £115,000 compared to £416,000 in Oxford and £254,500 in Bristol.
However, the falling price of oil continues to have its impact on the housing market in Aberdeen, where the year-on-year rate of growth fell eight per cent between July 2015 and last month.
The most recent Quarterly House Price Statistical Report from the Registers of Scotland shows the average price of a house sold in Aberdeen between April and June was £210,551, a 6.1 per cent drop from £224,341 in the same period last year.
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