With a steep rise in mortgage rates and a cost-of-living squeeze it’s no surprise Scotland’s house prices have dipped into negative territory – but Perth and Kinross is bucking the trend.
A new analysis of sales made between January and March by property firm Rettie found house prices in Perth and Kinross were up 2.3% year-on-year while nationally they declined by 0.6%.
And parts of Perthshire have seen house price rises of more than 20%.
Alastair Houlden, Rettie’s director of country house sales, described Perth and Kinross as “moving into a sellers’ market”.
He said the firm’s sales in the area achieved an average of £22,000 over the asking price in the past year.
Perthshire house prices rising
But not all areas of Perth and Kinross are equal.
Perth city centre, Scone, Dunkeld, Blairgowrie and Abernethy all recorded single digit levels of growth.
The region’s top performers were Auchterarder with a 23% price rise, Pitlochry (22%), Stanley (19%) and Kinross (17%).
The data is based on Rettie‘s analysis of Registers of Scotland data with only settlements of over 500 people and more than 20 transactions a year considered.
Crieff, Inchture, and Errol have seen average prices decline.
The average house price in Perth and Kinross is currently £247,002 against a Scotland average of £214,793.
Mr Houlden said constrained supply of quality homes is a factor fuelling the price growth. Transaction volumes in Perth and Kinross are down 4.2% in the first quarter of this year, compared to a national increase of 1.2%.
He said: “This is helping to push up property prices as it is making the market more competitive for purchasers.
“A number of our sales in the region continue to delivery very competitive closing dates and offers well above home report valuations. This is particularly the case for the most desirable properties.”
Reasons for higher sales
But he said the attractive lifestyle offered by the region was another key factor.
He said it is “no surprise” that there is strong demand from people looking for a better quality of life or an idyllic location from which to work remotely.
The highest average house prices in the region are in Auchterarder and Gleneagles (£357,567).
This is followed by Dunkeld and Birnam (£337,884), Pitlochry (£297,238), Comrie (£296,901), Milnathort (£266,299), and Abernethy (£254,620).
Mr Houlden adds: “Perth and Kinross is an outlier from the overall Scottish residential market in 2024.
“It has remained resilient through the recent challenging market conditions.
“It has a wonderful mix of communities and a diverse range of properties in which to live, including the bustling city of Perth, rural towns, picturesque villages, steadings, and stunning farms and estates.
“In a post-pandemic world, where working from home has become mainstream, it should come as no surprise that house price growth and demand for properties in the region remain so strong.
“The region is the gateway to the Highlands, and an attractive location for outdoor activities like walking, fishing, and golf, with a quality of life that is hard to beat.”
