Average house price in Falkirk area up by 14.7 per cent in last year

The cost of homes in the area has gone up by 14.7 per cent in the last 12 months, according to the latest Scottish House Price Index from chartered surveyor Walker Fraser Steele.

In August 2020, the average price for a house in the region was £151,468.

A year later, the figure stands at £173,659, placing Falkirk district 22nd out of the country’s 32 local authorities in terms of property price.

In last year’s findings, the area was ranked 23rd.

Overall, average house prices in Scotland reached a new high of £211,029, with all council areas seeing a rise in prices in the last year.

The average cost of a home shot up by £22,850 – or 12.1 per cent – during that time, to the end of August.

That’s 1.4 per cent higher than the 10.7 per cent recorded one month earlier and is the highest rate seen since March 2016, that date being just ahead of the introduction of the Land and Buildings Transaction Tax Additional (LBTT) Dwellings Supplement of 3 per cent – introduced on the purchase of buy-to-let properties and second homes in Scotland (a rate which was subsequently increased to 4 per cent on January 25, 2019).

Walker Fraser Steele described the increase in the rate of annual growth in house prices as “something of a surprise – we had assumed that since the ending of the LBTT holiday in March 2021 prices would begin to fall gently”.

The company believes the shift in housing preferences for larger properties with space for home working, rather than commuting to places of work, continues to influence strongly the current housing market.

The area with the highest annual increase in average house prices in August was the Scottish Borders, where average prices rose by 28.4 per cent.

Alan Penman, Walker Fraser Steele business development manager, said: “The race for space continues to support the prices of larger properties.

“The scarcity of this type of stock coupled with the continued high demand means prices remain strong.

“Property at the top-end has performed well throughout 2021 and there is no sign of any imminent let-up. We noted last month that the exceptional performance of larger properties was likely to continue and this month we have more evidence to support that view.

“People’s preference for more space and working from home has meant buyers have often sought properties that can accommodate new lifestyles.

“But we should remember that borrowers’ ability to afford these properties has in no small way been a result of the Land and Buildings Transaction Tax holiday earlier in the year, and the continued record low interest rates.

“In terms of the geographical performance of the Scottish regions, the area with the highest annual increase in average house prices in August was the Scottish Borders, where average prices have risen by 28.4 per cent, which again reflects the fact that the mix of homes that have been sold in this area has trended towards the more expensive end of the market.”

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