Property Market 2023 Review

Property Market 2023 Review

The Registers of Scotland is the leading source of land and property data and statistics in Scotland – their data gives us a detailed picture of how the residential property market in Scotland, and here we take a look at how last year went.

So, what happened to the property market in Scotland in 2023?

In 2023 the median property price was £185,000 – an increase of 19.4% from 2019 (£155,000). Whilst this is an impressive rise, the general housing market has been outperformed by the new build market, which has increased by 26% from £237,973 in 2019 to £299,995 in 2023.

If we look at prices by local authority area you will see that the highest-priced area to purchase a property last year was East Renfrewshire (£287,500), whilst in contrast, the lowest-priced area was Inverclyde (£102,781):

 

If we look close to home, the median residential property price in Highland in 2023 was £203,000 compared to £168,000 in 2019 – a 21 % increase, and 10% above the national level. Looking further back, in 2014 it was £148,000, and in 2004 it was £89,500!!

With regards number of sales, residential property sales in Scotland were down in 2023 by 9.7% to 93,767 from 103,815 in 2022 – a long way behind the market peak in 2007 when there were 154,022 residential property sales throughout the country.

Of the national total of 93,767 sales last year, Highland accounted for 3,833 of these – which was only 63% of the peak sales numbers in 2007 – 6,097.

In addition to prices and volumes, the data allows you look at various other factors, including how are people paying for these properties?

 

As you will see from the above graph, there is perhaps unsurprisingly a greater number of sales assisted by mortgages that there is cash sales, but cash sales generally constitute approximately one third of all sales in the country. In 2023, the number of cash sales have decreased by 1.5% (from 35,007 to 34,484), with mortgage sales decreasing by 13.8% (from 68,808 to 59,283) compared with 2022.

Of course, the total number of sales reduced by more than 10,000 in 2023, but these figures show that 95% of this reduction in sales stems from a reduction in mortgage sales, a direct link with the more challenging mortgage market that we have seen recently.

If you wish to discuss any aspect of buying or selling residential property please contact one of our Residential team on 01463 239393 or residential@macandmac.co.uk.

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