House price index keeps Inverclyde as cheapest place to buy

The average cost of a house in the region was £141,962 in August, with the national house price index (HPI) placing the district bottom of the country's 32 local authorities.

The area has recorded a monthly fall in prices of more than two per cent from July, while the annual change from this time last year is a reduction of more than one per cent.

With the number of transactions down by a tenth compared to last year, half of Scotland's local authorities experienced price falls and half had price increases in August 2023. The national average now stands at £223,655.

East Renfrewshire tops the list for the most expensive place to purchase a house, followed by City of Edinburgh. Meanwhile, West Dunbartonshire and East Ayrshire come in at the other end of the table ahead of Inverclyde.

House price statistics for August 2023 (Image: Walker Fraser Steele)

Scott Jack, regional development director at chartered surveyors Walker Fraser Steele, said: “In August 2023, the average house price in Scotland increased by £1,375, or 0.6 per cent, over the last 12 months.

"This is the same growth rate as seen in July, and it is the weakest annual rate of growth since the near start of the pandemic in May 2020.

“However, the devil is in the detail at a more granular level where we can see the performance of regions is split.

“Lower levels of activity in the market are reflected in the volume of sales which, so far this year, are about 10 per cent lower than the corresponding months of 2022.

"What this slowdown in activity does illustrate is that offers below the asking price are becoming more common. The restrained market sentiment may continue for some time, but with continuing strong earnings growth and the expectation that interest rates may be peaking from their July high, it could provide a soft landing for Scotland’s housing market.

"However rates need to continue in a downward trajectory to persuade buyers back to the market.”