South Lanarkshire house prices increased more than Scotland average in May

House prices increased by 2.8% – more than the average for Scotland – in South Lanarkshire in May, new figures show.

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.
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 2.8% – more than the average for Scotland – in South Lanarkshire in May, new figures show.

The rise contributes to the longer-term trend, which has seen property prices in the area grow by 15.9% over the last year.

The average South Lanarkshire house price in May was £161,881, Land Registry figures show – a 2.8% increase on April.

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

    Over the last year, the average sale price of property in South Lanarkshire rose by £22,000 – putting the area eighth 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 South Lanarkshire spent an average of £126,000 on their property – £16,000 more than a year ago, and £31,000 more than in May 2017.

    By comparison, former owner-occupiers paid £199,000 on average in May – 57.8% more than first-time buyers.

    Property types

    Owners of terraced houses saw the biggest rise in property prices in South Lanarkshire in May – they increased 3.5%, to £131,558 on average. Over the last year, prices rose by 15.3%.

    Among other types of property:

    Detached: up 1.9% monthly; up 19.9% annually; £321,118 averageSemi-detached: up 2.7% monthly; up 17.2% annually; £183,424 averageFlats: up 3.1% monthly; up 12% annually; £91,416 average

    How do property prices in South Lanarkshire compare?

    Buyers paid 13.7% less than the average price in Scotland (£188,000) in May for a property in South Lanarkshire. Across Scotland, property prices are lower than those across the UK, where the average cost £283,000.

    The most expensive properties in Scotland were in Edinburgh – £322,000 on average, and twice as much as more than in South 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

    South Lanarkshire: £161,881Scotland:£187,517UK: £283,496

    Annual growth to May

    South Lanarkshire: +15.9%Scotland: +11.2%UK: +12.8%

    Highest and lowest annual growth in Scotland

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