House prices increased by 1.8% – more than the average for Scotland – in Glasgow in May, new figures show.

The rise contributes to the longer-term trend, which has seen property prices in the area grow by 10.7% over the last year.

The average Glasgow house price in May was £167,691, Land Registry figures show – a 1.8% increase on April.

Over the month, the picture was different to that across Scotland, where prices increased 1.1%, and Glasgow was above the 1.2% rise for the UK as a whole.

Over the last year, the average sale price of property in Glasgow rose by £16,000 – putting the area 23rd among Scotland’s 32 local authorities with price data for annual growth.

The highest annual growth in the region was in Na h-Eileanan Siar, where property prices increased on average by 24.6%, to £160,000. At the other end of the scale, properties in Inverclyde lost 0.1% of their value, giving an average price of £113,000.

An imbalance between supply and demand for properties has remained the primary reason behind climbing house prices across the UK throughout the pandemic.

But activity is starting to slow, with soaring inflation putting household budgets under pressure.

Sarah Coles, senior personal finance analyst at financial advice company Hargreaves Lansdown, said: “The average house price hit another record high in May, and rose faster than any time since the peak in June last year.

"However, we’re starting to see small changes in the market, which are likely to mean weaker growth in the coming months, especially if interest rates are hiked in August."



First steps on the property ladder

First-time buyers in Glasgow spent an average of £151,000 on their property – £14,000 more than a year ago, and £43,000 more than in May 2017.

By comparison, former owner-occupiers paid £198,000 on average in May – 31.4% more than first-time buyers.


Property types

Owners of terraced houses saw the biggest rise in property prices in Glasgow in May – they increased 2%, to £211,116 on average. Over the last year, prices rose by 13.8%.

Among other types of property: Detached: up 0.5% monthly; up 18.9% annually; £453,373 average Semi-detached: up 1.8% monthly; up 15% annually; £248,309 average Flats: up 1.8% monthly; up 8.5% annually; £139,970 average


How do property prices in Glasgow compare?

Buyers paid 10.6% less than the average price in Scotland (£188,000) in May for a property in Glasgow. Across Scotland, property prices are lower than those across the UK, where the average cost £283,000.

The most expensive properties in Scotland were in Edinburgh – £322,000 on average, and 1.9 times as much as more than in Glasgow. Edinburgh properties cost 2.9 times as much as homes in Inverclyde (£113,000 average), at the other end of the scale.

The highest property prices across the UK were in Kensington and Chelsea.



Average property price in May Glasgow: £167,691 Scotland: £187,517 UK: £283,496 Annual growth to May Glasgow: +10.7% Scotland: +11.2% UK: +12.8% Highest and lowest annual growth in Scotland Na h-Eileanan Siar: +24.6% Inverclyde: -0.1%