North Lanarkshire house prices increased more than Scotland average in May

File photo dated 14/10/14 of a sold and for sale signs. A gradual slowdown in the housing market in Scotland is likely as the cost-of-living crisis bites, a report has warned. House prices in Scotland continue to edge upwards but indicators are softening slightly, according to the Royal Institution of Chartered Surveyors (Rics) latest survey. Issue date: Thursday May 12, 2022.

House prices increased by 1.8% – more than the average for Scotland – in North Lanarkshire in May, new figures show.

The rise contributes to the longer-term trend, which has seen property prices in the area grow by 12.6% over the last year.

The average North Lanarkshire house price in May was £134,606, Land Registry figures show – a 1.8% increase on April.

Over the month, the picture was different to that across Scotland, where prices increased 1.1%, and North Lanarkshire was above the 1.2% rise for the UK as a whole.

Over the last year, the average sale price of property in North Lanarkshire rose by £15,000 – putting the area 19th among Scotland’s 32 local authorities with price data for annual growth.

The highest annual growth in the region was in Na h-Eileanan Siar, where property prices increased on average by 24.6%, to £160,000. At the other end of the scale, properties in Inverclyde lost 0.1% of their value, giving an average price of £113,000.

An imbalance between supply and demand for properties has remained the primary reason behind climbing house prices across the UK throughout the pandemic.

But activity is starting to slow, with soaring inflation putting household budgets under pressure.

Sarah Coles, senior personal finance analyst at financial advice company Hargreaves Lansdown, said:“The average house price hit another record high in May, and rose faster than any time since the peak in June last year.

"However, we’re starting to see small changes in the market, which are likely to mean weaker growth in the coming months, especially if interest rates are hiked in August."

First steps on the property ladder

First-time buyers in North Lanarkshire spent an average of £110,000 on their property – £11,000 more than a year ago, and £27,000 more than in May 2017.

By comparison, former owner-occupiers paid £166,000 on average in May – 50.6% more than first-time buyers.

Property types

Owners of terraced houses saw the biggest rise in property prices in North Lanarkshire in May – they increased 2.5%, to £110,700 on average. Over the last year, prices rose by 11.8%.

Among other types of property:

Detached: up 0.6% monthly; up 16.5% annually; £276,959 averageSemi-detached: up 1.8% monthly; up 13.6% annually; £149,063 averageFlats: up 2.2% monthly; up 8.9% annually; £76,707 average

How do property prices in North Lanarkshire compare?

Buyers paid 28.2% less than the average price in Scotland (£188,000) in May for a property in North Lanarkshire. Across Scotland, property prices are low compared to those across the UK, where the average cost £283,000.

The most expensive properties in Scotland were in Edinburgh – £322,000 on average, and 2.4 times as much as more than in North Lanarkshire. Edinburgh properties cost 2.9 times as much as homes in Inverclyde (£113,000 average), at the other end of the scale.

The highest property prices across the UK were in Kensington and Chelsea.

Factfile

Average property price in May

North Lanarkshire: £134,606Scotland:£187,517UK: £283,496

Annual growth to May

North Lanarkshire: +12.6%Scotland: +11.2%UK: +12.8%

Highest and lowest annual growth in Scotland

Na h-Eileanan Siar: +24.6%Inverclyde: -0.1%