South Lanarkshire house prices dropped more than Scotland average in September

House prices dropped by 1.9% – more than the average for Scotland – in South Lanarkshire in September, new figures show.

But the drop does not reverse the longer-term trend, which has seen property prices in the area grow by 7.7% over the last year.

The average South Lanarkshire house price in September was £163,341, Land Registry figures show – a 1.9% decrease on August.

Over the month, the picture was different to that across Scotland, where prices decreased 0.9%, and South Lanarkshire was lower than the UK as a whole, where prices did not change.

Over the last year, the average sale price of property in South Lanarkshire rose by £12,000 – putting the area 24th 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 30.1%, to £162,000. At the other end of the scale, properties in Aberdeen lost 2.4% of their value, giving an average price of £145,000.

An imbalance between supply and demand for properties saw house prices climb across the UK throughout the pandemic.

But typical property values stalled across the UK between August and September, which caused annual growth to slow.

Andy Sommerville, director at property data provider Search Acumen said the latest data is further evidence of "a turning tide for house prices".

The figures are yet to reflect the full impact of the mini-budget, announced towards the end of September, which sparked volatitility in the mortgage market and saw interest rates on new agreements soar.

Nicky Stevenson, managing director at estate agent group Fine and Country said: “Annual house price growth slowed in September against a backdrop of rising interest rates and shrinking disposable incomes."

“All eyes will now turn to Chancellor Jeremy Hunt’s autumn statement, which is expected to include both tax rises and spending cuts," he added.

First steps on the property ladder

First-time buyers in South Lanarkshire spent an average of £127,200 on their property – £8,600 more than a year ago, and £28,800 more than in September 2017.

By comparison, former owner-occupiers paid £200,000 on average in September – 57.2% more than first-time buyers.

Property types

Owners of detached houses saw the biggest fall in property prices South Lanarkshire in September – they dropped 2.5% in price, to £321,171 on average. But over the last year, prices rose by 9.2%.

Among other types of property:

Semi-detached: down 1.7% monthly; up 8.9% annually; £186,104 averageTerraced: down 1.7% monthly; up 8.2% annually; £133,484 averageFlats: down 1.7% monthly; up 4.9% annually; £92,075 average

How do property prices in South Lanarkshire compare?

Buyers paid 14.9% less than the average price in Scotland (£192,000) in September for a property in South Lanarkshire. Across Scotland, property prices are lower than those across the UK, where the average cost £295,000.

The most expensive properties in Scotland were in Edinburgh – £337,000 on average, and 2.1 times as much as more than in South Lanarkshire. Edinburgh properties cost 2.6 times as much as homes in Inverclyde (£130,000 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 September

South Lanarkshire: £163,341Scotland:£191,941UK: £294,559

Annual growth to September

South Lanarkshire: +7.7%Scotland: +7.3%UK: +9.5%

Highest and lowest annual growth in Scotland

Na h-Eileanan Siar: +30.1%Aberdeen: -2.4%