House Prices Rising in Glasgow and Across Scotland, UK Average Price Reaches £291,699

House prices are on the rise in Glasgow and across Scotland, according to the latest data from mortgage lender Halifax. The average house price in Scotland has surpassed £200,000, reaching £205,523 after a 2.8% increase over the past year. This growth reflects a broader trend in the UK, where average house prices have seen a fifth consecutive monthly rise.

The Chancellor’s recent Budget announcement included measures to reduce the higher rate of capital gains tax for residential properties from 28% to 24% starting in April 2024. This move aims to incentivize landlords and second homeowners to sell their properties, potentially making more homes available for buyers looking to enter the market.

Industry experts have noted a growing momentum in the housing market, with committed buyers and a strong pipeline of applicants indicating a busy spring market ahead. However, concerns have been raised about the potential impact of the capital gains tax reduction on rental properties, as it may exacerbate the shortage of rental homes and lead to higher rents for tenants.

As the market continues to recover, experts anticipate an increase in transactions and a rise in prices. Affordability remains a key concern, with better-value areas experiencing stronger price growth compared to more expensive regions. Calls have been made for the Bank of England to consider reducing interest rates to ease borrowing costs for prospective homeowners.

Overall, the housing market in Scotland and the UK is showing signs of stability and growth, with various factors influencing market dynamics including interest rates, affordability, and government policy. As the year progresses, it will be crucial to monitor these trends and their potential impact on both buyers and sellers in the property market.