Lloyds TSB- House price decline slows in Scotland

Scottish house prices have fallen at a slower rate in the last quarter, according to the Scottish House Price Monitor from Lloyds TSB Scotland.

Although house prices have continued to fall, they have done so at a slower rate of decline than the previous quarter, with the average Scottish property down just 2.3 per cent in the three months to January 31st.

The average price of property in Scotland is now £158,820, with annual house prices showing a rise of 1.6 per cent, but this figure is significantly down on the 4.9 per cent reported in the previous edition of the House Price Monitor. The volume of house purchase transactions is down 48 per cent on the levels recorded for the same period last year.

Professor Donald MacRae, chief economist, Lloyds TSB Scotland, said: “The Scottish housing market has responded to the economic slowdown with a reduction in transactions and in some cases price falls.

“The cost of borrowing has reduced for many mortgage holders with the latest fall in interest rates in early February. The Scottish housing market is adjusting to changing circumstances with reduced sales and in some cases lower prices rather than a precipitous collapse.”

According to Lloyds TSB the picture across the country is very mixed, with areas reporting the greatest quarterly fall still recording an annual increase. The east of the country has witnessed price rises in the last quarter, partially compensating for greater falls in the previous three months. Properties in the west have now seen prices fall in the latest quarter.