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Road improvements and oil helped to fuel Angus house price boom

Road improvements and oil helped to fuel Angus house price boom

Improved transport links and the oil sector are said to be two of the factors behind a 10-year house price boom in Angus.

Average house prices in two Angus towns have soared by 129% and 135% in the past 10 years. They were among six in the north-east to be listed in the top 10 of a new survey measuring UK house price growth over the past decade.

Research showed that Peterhead in Aberdeenshire has recorded the largest gain in average house price growth per square metre. The town has seen an increase of 160% to £1,254 per square metre in 2011, up from £481 in 2001.

Inverurie, in Aberdeenshire, experienced the second largest gain in the UK (142%) since 2001, followed by Montrose (135%).

Ellon, also in Aberdeenshire, saw a gain of 134%, Aberdeen recorded a rise of 131% while Arbroath increased by 129%.

A property manager in Arbroath said the town has benefited from improved transport links in recent years which have seen the average house prices increase.

Roddy Maxwell, property manager at Thorntons Property Services in the High Street, said: ”The general improvement of communications, primarily the dualling of the A92 through to Dundee, adding to the town’s position on the mainline railway, has seen an increase in commuters looking to move to Arbroath.

”More recent investments from Tesco and the soon-to-be-opened Asda store, are providing new employment whilst adding to the facilities and services available locally.”

The town has recorded a 129% increase in average house price per square metre in the last 10 years in the survey, which was conducted by the Bank of Scotland.

Mr Maxwell added: ”It is extremely encouraging to see Arbroath included in the top 10 for UK house price growth. I would agree that, historically, this will have been influenced, to a degree, by the oil industry.

”Commuting to Aberdeen and Dundee became more popular as buyers realise that towns like Arbroath offer relatively good value by comparison to city prices and offer a good level of services to cater for day-to-day family needs.

”Similarly as house prices in Dundee moved upwards during the property boom, buyers were encouraged to make the relatively short drive to Arbroath and other areas of Angus.”

Helensburgh (51%), in Argyll and Bute, and Coatbridge (59%), in North Lanarkshire, are the towns which recorded the smallest price gains in Scotland on a per square metre basis over the past decade.

Edinburgh is Scotland’s most expensive area with an average price of £2,101 per square metre in 2011, more than twice that in the least expensive town, Lochgelly, at £911 per square metre.

Martin Ellis, housing economist at Bank of Scotland, said: ”When looking at property prices on a square metre basis, there has been a significant divergence in house price performance across Scotland over the past decade, ranging from a rise of 160% in Peterhead to 51% in Helensburgh.

”The majority of towns that have seen the highest price growth over the past decade had relatively low prices in 2001.

”Strong economic growth over the decade as a whole has also helped to drive up prices in many of those areas that have seen substantial price gains. This is apparent in several towns in Aberdeenshire where the economy has been stimulated by the strong performance of the oil sector.”