Top-end Scottish house prices slow down

Homes at the top-end of Scotland's property market have shown signs of a slowdown, a survey reveals today.

Lloyds TSB's quarterly look at Scottish house prices shows detached homes experienced the smallest growth levels over the past year, rising 8.4 per cent.

This is 2.9 percentage points below the Scottish average of 11.3 per cent.

Semi-detached properties also experienced below average increases, up 10.2 per cent since January of 2006.

By contrast terraced home prices were up 16.5 per cent and flats up 11.3 per cent over the same period.

"The rate of increase of house prices in Scotland continues at a robust pace propelled by a favourable economic background and demand for houses exceeding the supply," said Donald MacRae, Lloyds TSB Scotland chief economist.

He added the prospects for the Scottish property market looked solid as first-time buyers have been showing increased interest, retail sales were growing, unemployment claims were low and the Scottish economy is forecast to grow around 2.25 per cent this year.

"However, there is clear evidence of a slowdown in price increases at the higher end of the market," Professor MacRae added.

"Recent increases in interest rates will continue to moderate further house price rises from these high levels. The prospect for the Scottish housing market is a gentle slowdown in the rate of price increase."

Over the three months to January 31st 2007, house prices were up 3.3 per cent seeing the average home cost £147,763.

Aberdeen experienced the largest annual rise, with prices up 18 per cent since January 2006. Glasgow had the smallest rise in property prices up six per cent over the same period.