House prices in Scotland fell by 2,3% over the three months to January according to the latest Scottish House Price Monitor from Lloyds TBS Scotland. On an annual base, Scottish house prices have still risen by 1.6%, the report also points out, with lower priced properties holding their value more than top end properties.

The rate of decline in Scottish house prices is also slowing, says the report and remains considerably less than that in the rest of the UK. However, the number of transactions has fallen steeply – by 48% year-on-year.

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Price rises and falls have been recorded all over the country regionally, and the areas which were recording falls last year are now picking up whereas areas recording no falls last year are seeing price drops now. Average prices in Edinburgh, for example, showed a significant fall last quarter of 7.3%, but in this quarter average prices have gained 7.3% which combine to give unchanged average prices so far this year.

This is in marked contrast to the large falls being experienced in England and Wales from last year through into this year as well, but as the report says, the Scottish economy is not officially in recession, although figures still to come from quarter four as expected to change that: ‘The Scottish housing market is adjusting to changing circumstances with reduced sales and in some cases lower prices rather than a precipitous collapse,’ it states.

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