"Just as the rest of the UK seems to be slowing, Scotland’s seeing a minor price boom."
This increase is helped by a particularly strong month in which prices rose 1.6%. Other than the 9.6% spike in March 2015 ahead of the Land and Buildings Transaction Tax introduction, this is the biggest increase since February 2007 at the height of the last housing boom.
Edinburgh powered the house price growth in January, accounting for the majority of the monthly increase, with prices up 4.8% (second on the mainland only to the Scottish borders, which were up 6.2%).
There is strength across the rest of Scotland, though, as nine out of 32 local authority areas set new peak prices in January.
That included Scotland’s second most expensive area, East Dunbartonshire, which has seen the biggest annual increase on the mainland (13.5%), as well as some of its cheaper areas, such as Renfrewshire (11.8%), Falkirk (12%) and North Lanarkshire (5.1%).
East Ayrshire is the cheapest area in Scotland at £115,630, but is one of only six to see prices fall in the last 12 months.
Edinburgh remains the most expensive area, with average prices up 7.6% annually to £264,903. Glasgow, was another to set a new peak average price in the month at 1.1%, and saw prices rise 8.4% annually.
Christine Campbell, Your Move managing director in Scotland, said: “Just as the rest of the UK seems to be slowing, Scotland’s seeing a minor price boom. And that’s down in large part to the performance of the market in both Edinburgh and Glasgow.
“It is still too soon to say what the principal drive behind Scotland’s performance is, however there has been an observable pattern that the number of sales on prime properties above £750,000 has increased over the last twelve months. On top of this, there has been a general increase in the price of flats in Edinburgh, likely due to first-time buyers looking for more affordable living solutions in the capital.
“As we move further into 2018, it will be interesting to see how low interest rates, and an increasing shortage of property for sale continue to affect the market north of the border."
