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The residential property market in Scotland has had a strong start to 2024, with the latest official figures revealing that home values across the country increased over the previous 12 months (https://www.scottishfinancialnews.com/articles/average-house-price-increases-by-48-in-12-months). According to the recent data released by Registers of Scotland, the average house price rose to £190,000 in January, which is a 4.8% increase. These price rises have gone against the forecast of a potential property market slowdown as rising mortgage rates and the cost of living crisis are still at the forefront of consumer concerns.

The biggest gains were seen in detached properties, which saw average prices soar 6.7% annually to £343,000 as of January 2024. Flats, on the other hand, experienced a more muted appreciation of just 2.7% over 12 months to an average of £130,000. Breaking it down regionally, 26 of Scotland's 32 local authority areas posted year-over-year price increases in January. Midlothian led the pack with an 8.3% jump that pushed the area's mean house sold prices to £241,000. As has been the case for years, Edinburgh remained the country's priciest market at an average of £326,000. The Inverclyde area was the most affordable at just £126,000.

While mortgage rates and economic uncertainty could test the market in 2024, experts suggest that Scotland's perennial housing supply shortages and its appeal as a place to live could continue to support home value increases. For now, the new data confirms that Scottish property remains a hot commodity to start the year.

Midlothian

Situated in the central belt, Midlothian witnessed the largest house price increase of any local Scottish authority last year at 8.3%, reaching an average house price of £241,000 as of January 2024. However, this still represents better value compared to its neighbour Edinburgh, where the typical home costs £326,000. The area encompasses a mix of larger towns such as Dalkeith and Bonnyrigg, alongside pleasant countryside villages. It appeals to families with its reputable schools and accessibility to Edinburgh. Property types range from traditional stone cottages to modern developments offering new family homes at affordable prices in expanding towns, including Newtongrange. Despite its semi-rural atmosphere, Midlothian residents can easily access Edinburgh's amenities nearby, but the area has its intrinsic draws too, such as Dalkeith Country Park, cultural attractions and the Danderhall leisure centre.

Clackmannanshire

Another affordable option is the historic county of Clackmannanshire, where the average property costs £165,000 - over 13% below Scotland's average. Conveniently located in central Scotland, it offers easy access to cities including Stirling, Falkirk, Edinburgh and Glasgow. The former county town of Alloa provides diverse housing ranging from terraces and new estates to substantial detached villas. Despite its industrial roots, it boasts excellent amenities, including the Alloa Tower Trail, museums, parks and the new Rosebank Distillery for whisky enthusiasts. Nearby villages such as Tullibody and Cambus are even more budget-friendly while offering that coveted village lifestyle near green spaces like the Gartmorn Dam Nature Reserve. With its compact size, Clackmannanshire maintains a tight-knit community spirit combined with urban conveniences in towns such as Alloa.

East Ayrshire

On the west coast, East Ayrshire has emerged as another potential value area encompassing former mining communities between Kilmarnock and coastal Ayr. After rising prices over the past year, it still represents excellent value for money - especially in hotspots such as Kilmaurs and Stewarton. Traditional 'red stone' miners' cottages lend character, although modern new-builds such as those in Galston also provide affordable family homes. Commuters benefit from decent transport connections south to Ayr or north towards Glasgow, while outdoor lovers can explore the beautiful Clyde Muirshiel Regional Park nearby. Once heavily industrialised, these former mining towns have undergone regeneration, improving amenities with new leisure facilities and retail parks popping up.

Perth and Kinross

In Perth and Kinross, the city of Perth itself is getting pricier as central belt buyers seek an escape. However, surrounding smaller towns can offer relative value. A prime example is Blairgowrie, around 20 miles north of Perth, where the £214,000 average is well below Perth City's £266,000 price tag, and buyers can enjoy a charming Scottish town on the River Ericht amid the Perthshire hills. Amenity-wise it has high-street shops, supermarkets, a golf club, a leisure centre and Blairgowrie High School's solid reputation appeals to families. Housing ranges from affordable terraces to spacious detached villas. Other potential targets include Crieff, nestled in Strathearn and Kinross, handily placed just off the M90 corridor. Both combine character properties and new developments at lower prices than Perth.

The Scottish Borders

Scotland's major cities are still very popular with home buyers but many people are starting to look to smaller towns for a better value home. Hawick, located in the Borders region of Scotland, has seen a 5% increase in house sold prices over the last year, with the average home now worth around £145,000. At these kinds of prices, purchasers could secure a traditional sandstone terraced residence or even a detached home with a garden. Alongside affordable housing, Hawick also has a lively high street, major supermarket chains, leisure amenities and good schools. Similarly, the mill town of Galashiels is another potential bargain for prospective homeowners, with a typical property costing around £160,000. This town has experienced a revitalisation in recent years with new residential developments, retail parks and recreational facilities. Galashiels' location gives residents a commute of under an hour to Edinburgh, while the picturesque Borders countryside has opportunities for hiking, mountain biking, angling and other outdoor pursuits.

Even with an increase in prices, Scotland's property market still offers plenty of value for money in the current market. By widening their search to the likes of Midlothian, Clackmannanshire, East Ayrshire and parts of Perth & Kinross, prospective buyers can hope to secure an affordable yet appealing property without compromising on location, amenities or housing type.

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