Annual house price growth in Scotland climbed to 8.4% in May, its highest level so far in 2022.

According to the latest Walker Fraser Steele Acadata House Price Index, Scottish house price growth was up from 7.7% in April, and 6.4% in March.

Scottish prices also increased by 1.0% month-on-month during May, to take the average price of a property in Scotland to a new record of £220,870.

This price is £17,100 higher than the average recorded in May 2021, and is the eleventh time in the last 12 times that Scotland has seen a new record house price.

“One would never claim any market is bulletproof, but on the current evidence Scotland’s property market remains at the very least in robust form,” commented Walker Fraser Steele regional development director, Scott Jack. “The rise in interest rates and the increase in the cost of living are not yet having a marked impact on house price growth.

“The market transaction data too is robust – defying any expectations of a slow-down on this evidence. The provisional figure for May 2022 is 9,092 transactions, which is the second highest May figure of the last ten years – the highest having taken place in 2019, being the year before the pandemic struck.

“Ultimately demand is strong, but the supply of desirable stock remains low. Property prices are therefore seemingly more resilient in the face of rising borrowing costs.

“Over and above homebuyers, property remains attractive to investors too as it continues to out- perform other assets such as equities, which are affected more acutely by higher borrowing costs.”

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