TWO of the Lothian council areas are amongst those with the highest average house price increases in Scotland in the last year.
The recent release of the latest UK House Price Index reveals that West Lothian and Midlothian have endured a higher percentage increase than most other areas in the country.
Placing second and third place in the rankings of Scotland’s 32 council areas, respectively, house-hunters in the two regions can expect to pay well over £200,000 on average for a property.
West Lothian has seen an increase of 9.7% from October 2023 to October 2024, meaning that the average house price now sits at £219,696, having previously been recorded as £200,236.
Meanwhile, Midlothian has fared little better, with an increase of 8.7% from October 2023, making the average house price a whopping £248,314, up from £228,357 last year.
East Lothian‘s price increases are less drastic than its counterparts – increasing 5% in the same period – but have now broken the £300,000 mark, rising from £299,243 to £314,256.
At the heart of the Lothians though, the City of Edinburgh has seen its prices raised from £320,168 to £339,648 – a total percentage increase of 6.1%.
Despite this, all these areas pale in comparison to the region with the highest increase in average house prices.
The Shetland Islands council area tops the list with a staggering 28.2% increase, meaning prices have soared from £175,986 in October 2023 to £225,587 in October 2024.
The notable rise in prices across West Lothian and Midlothian in particular come after the former declared a housing emergency in June 2024.
West Lothian Council’s housing department reported having around 1,400 homeless cases at the time, an average of 350 new applications each month and the waiting list sitting just under 12,000.
Scotland as a whole is experiencing a housing crisis, with over 16,000 households – including over 10,000 children – in temporary accommodation as of March 2024.
Shelter Scotland also reported 1.5m people living in overcrowded, dangerous, unstable or unaffordable housing – over a fifth of the total population.
The Scottish Government reported that in 2023-24, 19,632 new homes were completed in Scotland, and 16,404 new builds were started.
This marks a decrease from the previous financial year, with completions down 17% and starts down 15%.
The government has pledged to deliver 110,000 affordable homes by 2032, with at least 70% of those homes for social rent.
The Housing (Scotland) Bill was also introduced to the Scottish Parliament in March 2024, aiming to improve housing outcomes in the country.
The bill includes a system of rent controls, new rights for tenants and a cap for rent increases limited to the consumer price index plus 1%, up to a maximum increase of 6%.
The bill also focuses on preventing homelessness, balancing tenant protection and landlord rights and ending child poverty by keeping rents affordable and ensuring people can stay in their homes.
The bill has passed stage 1 in the parliament, with stage 2 currently underway, allowing MSPs to propose changes.
The bill has attracted criticism from landlords, tenants’ bodies and MSPs though over its flaws in addressing the actual shortage of homes in Scotland.
Propertymark, a membership organsation for estate agents, previously warned that the legislation “does very little to increase the supply of private rented homes and only offers rent control as the solution to improve affordability for renters”.
Propertymark wrote on its website: “Rent control alone is not the solution to Scotland’s housing challenges.
“Echoing Propertymark’s briefing to MSPs before the debate, Meghan Gallacher, Conservative MSP, called on the housing minister to admit that the Scottish Government’s rent control policy has driven up rents, priced thousands of Scots out of their homes, and resulted in the loss of thousands of private rented houses and flats.
“Additionally, she drew attention to the risk that billions of pounds of investment will be lost as a result of permanent rent controls, worsening the housing emergency.
“Previous policy decisions have led to skyrocketing rents in Scotland, with the average monthly rent increasing 7.2% to £973 in the 12 months to September 2024.
“Our member data shows that on average there are ten applications per property from prospective tenants.
“In the new deal for tenants, the Scottish Government talked about affordable rents, the supply of rented homes, and raising standards.
“However, the legislation does very little to increase the supply of private rented homes and only offers rent control as the solution to improve affordability for renters.
“Rent levels are high because there are too many people who have to rent, and not enough homes available.
“Rents can only be reduced sustainably by increasing the overall supply of all types of homes, so that more people can get a social home or buy their own with a mortgage, and fewer private renters have to compete over each available home.”
