The average house prices in Scotland was up 1.6% to £172,185 in the three months to July, says the new Lloyds TSB Scotland house price monitor. This brings annual house price inflation north of the border to 9.3%.
Prices in the cities were reasonably static – Aberdeen and Dundee saw small falls but overall annual increases, while Edinburgh prices began to climb for the third quarter running after a fall in the third quarter of 2007. Glasgow prices remain robust, with a fourth consecutive price rise evident in the south west of the country although prices in the south east showed a small fall.
The report states: ‘While there are price falls evident in some parts of Scotland, the overall picture is of a modest increase in price reflecting the traditional spring effect. However, the number of house purchases in the House Price Monitor has fallen by 27% since the same period last year.’
It continues: ‘The Scottish economy is growing at an annual, underlying rate of 2.1%. 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.’