Scottish house prices skyrocketed over the last year, rising 10.6% in March 2021 over the previous year. This is the biggest surge in Scottish home prices in the last decade, with the average price of a house in Scotland now up to £167,000.

This jump follows the 8.2% increase in average house price reported in December 2020 by the Office for National Statistics.

The COVID-19 pandemic left a sizeable impact on the economy, and the residential real estate industry in Scotland is no exception

As the global market started to recover, transactions in Scotland picked up as well. So, although the pandemic is far from over, there is an increase in the number of buyers, many of whom had to wait it out over the last 18 months. With a surge of buyers ready to pounce, soaring house prices naturally followed.

The market remains dynamic, and experts project further growth within the residential real estate sector in the next few years.

Why are house prices rising?

The steep growth in house prices tracks with the rapid increase in volume of residential sales in Scotland during the same period. Sales numbers reached 7,562 in January 2021—10.2% higher than the previous year’s estimate.

This massive increase in the number of home buyers in Scotland is connected to a newfound desire for many people to relocate into more affordable and pleasant rural areas.

As the pandemic forced people away from happening spots and introduced the conveniences of remote work, many are now considering the appeals of a less hectic life away from the buzz of crowded cities. Scotland’s famously beautiful landscapes could be the ideal for many buyers, triggering the recent increase in home sales.

As economies slowly reopen and restrictions lift, we can anticipate an influx of interested buyers, further boosting the real estate market. Some potential buyers have even been able to save more during the pandemic, accelerating their home purchasing power. Meanwhile, others are just making up for last year’s delayed plans.

Homes and properties are selling out fast, and the demand now outweighs the available supply, with expectation of further increase in home values.

What can you do to secure a home?

If you are currently paying an amortisation for a house in Scotland, it is advisable to pay on time or early to reduce the total interest costs. This is especially important if you have a variable-rate interest-only loan. There’s a chance of approaching changes in interest and mortgage rates, so it’s best to check with your lender.

You can also consider making use of printable amortisation schedules to track your payments and interest rates over time. This way, you will have a better perspective on your current and future expenses.

If you are thinking about buying a house in Scotland, the reports on increasing prices can be daunting. Property values and housing prices can affect mortgage rates as well as the economy as a whole.

The good news is that the Scottish government has plans of establishing 100,000 more affordable houses over the next 10 to 20 years. This is a promising investing opportunity for anyone looking for a new home in Scotland.

The current goal of the global market is to make up for the previous year’s set backs, hence everyone economy is desperately seeking growth. As the demand increases and the economy grows, mortgage rates tend to go up, so be sure to lock in a rate before the expected increases take effect.