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House prices showing signs of life in some areas of Scotland

...But researchers caution excessive 'green shoots' optimism

27th July 2009

Research released today reveals the areas of Scotland that are 'hot' and those that are 'not' in terms of house price performance over the first half of this year, indicating which areas may lead any housing market recovery, when it comes.

Zoopla.co.uk, the UK's leading source of house price information, has released the statistics showing how each area has fared in the first half of 2009 compared to the same period one year ago and the last half of 2008. The figures show that whilst property values were in freefall in almost all areas of the country towards the end of last year, the rate of decline so far this year has significantly slowed and some areas have actually experienced positive growth over the first six months of the year.

However, the research also shows that the performance during the first half of 2009 should perhaps not yet be cause for celebration, given that over the past two years the decline in house prices in the last six months of the year was significantly worse than during the first half of the year.

Overall, according to Zoopla.co.uk, house prices in Scotland are down by 2.71% since 1st January of this year to a current average home value of £150,029, a marked improvement over the alarming drop of 10.62% in the second half of last year. And in Edinburgh house prices have fallen by just under the national average, down 1.16% so far this year, to an average home value currently standing at £209,077 compared to a fall of 8.94% in the last six months of 2008.

The areas of Scotland showing signs of an early recovery so far this year include: Inverclyde (up 1.52%) and Renfrewshire (up 0.80%). In contrast the areas still struggling to show any signs of improvement are Glasgow (down 9.11%), West Dunbartonshire (down 8.99%) and Clackmannanshire (down 5.43%).

Alex Chesterman, CEO of Zoopla.co.uk commented: "Whilst optimism around a full market recovery may well be somewhat premature, there are some bright spots emerging in the market and the overall pace of house price decline has slowed noticeably compared to last year which is good news for homeowners."

Best Performing Areas in Scotland (1st Half 2009)

Area Average home value* % Change 1H 09 % Change 2H 08 % Change 1H 08
Inverclyde £134,380 1.52% -12.04% 4.02%
Renfrewshire £129,979 0.80% -13.22% 5.64%
Angus £132,264 -0.51% -7.68% -3.28%
North Lanarkshire £104,772 -1.12% -10.56% -3.02%
Edinburgh £209,077 -1.16% -8.94% -2.99%
Moray £138,762 -1.19% -10.95% 1.89%
Aberdeenshire £190,201 -1.20% -10.50% 5.48%
Fife £135,078 -1.26% -10.43% -0.08%
Western Isles £122,433 -1.72% -12.47% 3.23%
Argyll & Bute £148,722 -1.90% -12.65% 6.36%

*Source: Zoopla.co.uk

Slowest Recovering Areas in Scotland (1st Half 2009)

Area Average home value* % Change 1H 09 % Change 2H 08 % Change 1H 08
Glasgow £139,113 -9.11% -9.11% 4.78%
West Dunbartonshire £112,675 -8.99% -10.56% 3.44%
Clackmannanshire £124,492 -5.43% -9.65% 1.12%
Stirling £166,668 -5.43% -9.65% 1.12%
Falkirk £118,538 -5.42% -9.67% 1.20%
Scottish Borders £147,924 -4.80% -12.82% -0.63%
Perth & Kinross £169,158 -4.77% -7.53% 0.74%
Midlothian £157,581 -4.25% -7.92% -4.69%
East Lothian £185,181 -4.24% -7.92% -4.69%
West Lothian £137,000 -4.24% -7.92% -4.69%

*Source: Zoopla.co.uk

- Ends -

For further information, please contact Tim Vooght at pr@zoopla.co.uk or on 020 3872 5615.

Notes to editors

About Zoopla.co.uk

Zoopla.co.uk is a unique property website offering users information and tools to help them make better-informed property decisions. Our aim is to provide the most comprehensive source of residential property market information in the UK to help buyers, sellers, owners and estate agents alike and give them an advantage in the property market.

In 2007, following the success of bringing DVD rental to the web with LOVEFiLM.com, Zoopla founders Alex Chesterman and Simon Kain realised that the UK property market had yet to fully enjoy the benefits of the internet in terms of its ability to deliver transparency and efficiency. They set out with the mission to transform the property market for both professionals and consumers by:

  • offering users FREE access to instant value estimates, sold house prices and local information and trends
  • enhancing estate agents' marketing efficiency by providing exposure/leads on a pay-for-performance basis
  • helping users find local agents and other property professionals to assist them in the transaction process
  • letting buyers make offers on ANY UK home and owners test interest in their homes before choosing to sell
  • creating an environment where anyone can ask/answer questions and share their knowledge about homes

We have started by providing FREE value estimates, sold prices and local information as well as letting users add content by editing information and uploading photos. We are the UK's fastest growing property website and by far the largest and most active property community in the UK, with over a million user contributions to our website in 2008 alone. We have already launched some unique features, like TemptMe™ and AskMe™, which allow consumers to gain an insight into the market and discover information they won't find anywhere else. Our estate agent directory, FindAnAgent and our unique AskAnAgent feature allow users to contact local professionals directly for their expertise. Very soon we will begin accepting estate agent listing feeds and delivering buyer leads to agents on a no-risk, performance-based model, making Zoopla.co.uk the most cost-effective way for agents to gain exposure and develop their inventory pipeline.

Our value estimates are calculated using a proprietary algorithm (a secret formula) that we have developed by analysing millions of data points relating to property sales and home characteristics throughout the UK. The algorithm works by comparing relationships between home prices, economic trends and property characteristics in given geographic areas. Our estimates are constantly refined, using the most recent data available from public sources combined with our proprietary used-generated data and a variety of statistical methodologies, in order to provide the most current information on any home.

Zoopla Limited is a privately held company with a highly experienced and proven management team, backed by well-respected angel investors and leading venture capital firms Atlas Venture (atlasventure.com) and Octopus Ventures (octopusventures.com).

Zoopla.co.uk Awards

  • Winner: 'UK's Most Promising Internet Company 2008' (First Tuesday)
  • Winner: 'Best Property Website - Gold Award' (Web User Magazine)
  • Winner: 'Best Real Estate website 2008' (Websiteoftheyear.co.uk)

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