Mixed picture for Scottish house prices

Lloyds TSB has published a quarterly report showing that whilst house prices across Scotland continue to rise, the picture across the region is not consistent.

In the three months to the end of July, the quarterly price index for the average domestic property in Scotland rose by 1.7%, giving an average mix adjusted price for a home of £162,779 and an annual increase of 13.2%.

On an annual basis properties in the north of Scotland increased strongly, at 21%, and in the city of Aberdeen, by 32%.

Aberdeen did show a slight fall in the three months covered by the index, but the previous quarter has seen exceptionally strong growth.

The increase for the north of Scotland as a whole suggests that the housing boom in the city is extending into the surrounding areas.

Dundee also had a strong quarter, giving a 16% rise over the last 12 months and Edinburgh has remained consistently strong with a 15% rise in the last year.

However, Glasgow is showing clear signs of a slowdown with a quarterly fall in prices giving an annual rise of 5%.

Some areas outside Scotland’s main cities have also seen quarterly falls, giving annual rises of between 10% and 21%.

Whilst Scottish house prices have now risen steadily for 78 consecutive months, the latest quarterly index shows growth to be slowing in some areas.

At the same time, Lloyds TSB believes that a fall in Scottish house prices remains unlikely.

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