Property prices in Dundee are now the fastest growing in Scotland

It’s perhaps not surprising with the recent launch of the new V&A in Dundee that new research has shown the cost of a home in the city has jumped by 5.7% in the last year – more than anywhere else north of the border.

The jump has been tributed to the effect of the V&A’s arrival on Tayside, as the figures were collated between April and June this year, as the museum neared completion.

Despite the rise, Dundee is still one of the cheapest places to buy, with an average price of £140,849 compared to £169,450 nationally.

The figures have been compiled by Aberdein Considine and Aberdeen and Grampian Chamber of Commerce in the sixth edition of Scotland’s Property Monitor, billed as “the country’s most comprehensive property market research.”

Alan Cumming, national estate agency director at Aberdein Considine, said: “Dundee has been undergoing a renaissance as this magnificent new landmark takes shape on the banks of the Tay.

“The city has a growing UK and global profile and with more than 500,000 people expected to visit over the next year, this is only going to grow.

“Dundee is one of the most affordable cities in the UK for first-time buyers, which makes it a popular choice for young house-hunters.

“We may well be at the beginning of a period of sustained price growth and I am incredibly optimistic about what the future holds for the city’s property market.”

Elsewhere, property prices are also on the up. The cost of a house in Angus and Fife rose by 1.5% to £161,304 and by 4.7% to £157,659 respectively.

Perth and Kinross was the only place in Tayside to see prices fall, as properties changed hands for 4.3% less than last year, although it was one of just five Scottish areas to record an increase in sales.

Despite this, it remains the most expensive place at £186,737 for the average home – the eighth most expensive in Scotland and around £17,000 higher than the national average.

Nationally, the report states the summer heatwave pushed the average Scottish property price to a record £169,450 during the second quarter of the year, up 4.7% on the same time last year and £175 higher than the previous record set in the third quarter of 2017.

It meant the market bounced back after a poor first quarter, affected by the “beast from the east” weather phenomenon.

Prices rose in all cities except Aberdeen, which is still suffering from the downturn in the oil industry.

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