Property prices up in Scotland

Property in Scotland has continued to defy national trends, with average prices growing by 1.6 per cent in the three months to July 31st.

On an annual basis, Scottish house prices have risen by 9.3 per cent. As a result, the average home now costs £172,185, according to the latest Lloyds TSB House Price Monitor.

The north (excluding Aberdeen) of the region has been leading the way in terms of growth, with prices up 20.6 per cent over the last year. The city of Aberdeen itself has since prices increase by 8.8 over the same period, but has seen a slip of 2.8 over the last three months.

Dundee has also seen a good year, with prices up 9.6 per cent, along with Edinburgh, which has recorded price rise of 6.7 per cent.

Conversely, the number of house purchase transactions in Scotland has fallen by 27 per cent since the same period last year – illustrating a slowdown in the wider market.

Professor Donald MacRae, chief economist, Lloyds TSB Scotland, commented: "The price boom of the last five years may well have passed into history but so far the effect of its demise is to slow the number of transactions rather than cause a drop in prices.

"The Scottish housing market is demonstrating its traditional resilience in the face of an economic downturn."

The price movement across Scotland is composed of price changes in different property types.

In contrast to the previous quarter, flats are showing a decrease of 1.7 per cent, and detached properties a decrease of 1.2 per cent.

Terraced properties and semi-detached properties are showing quarterly increases of 5.5 per cent and 7.2 per cent respectively.

Chris O'Toole