Scottish house prices slow down

The top end of the Scottish housing market is showing signs of slowing down, according to Lloyds TSB.

The Bank’s Scotland House Price Monitor (SHPM) has highlighted that the market continues to grow, but has slowed down when compared to previous figures.

Looking at the three months leading to January 31st, the SHPM showed that the average house price rose by 3.3 per cent, well below the annual rise of 11 per cent.

The biggest annual rise can be seen in Aberdeen, where there was an 18 per cent increase. Although this is a large rise, it follows a slowdown in the spring of 2006.

The figures from Lloyds make good reading for those of you looking to take out a mortgage on a property in Scotland and, although overall prices appear to be falling, the Scottish market is still doing very well.

“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 professor Donald MacRae from Lloyds TSB Scotland.

“First time buyers are showing increased interest in the market. The Scottish economy is forecast to show growth of around 2.25 per cent in 2007.”

Looking at the slowing down of price increases on some Scottish properties, Mr MacRae said that this is just a natural trend.

“There is clear evidence of a slowdown in price increases at the higher end of the market,” he commented.

“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.”

If you want to invest in a property it may be worth considering Scotland, where the average house price is around £147,763.

Tags: Scottish economy, Economic history, favourable economic background, GBP, lloyds tsb