Scottish house prices grow
May 22, 2007 by admin
Filed under News, News-Mortgages
Those of you considering taking out a mortgage on a property in Scotland may want to act quickly after prices in the country recently spiked.
Figures from Lloyds TSB Scotland show that house prices in Aberdeen, Edinburgh and Dundee increased in the last quarter.
The reasons behind this are varied, with Lloyds putting it down to a rise in mortgage transactions, a low number of homes on the market and a rush to take advantage of fixed-rate deals as interest rates rise.
The average property price in Scotland rose by 6.8 per cent in the three months to April 30th, putting the average price at £154,344.
“Average prices [in Scotland] are some three quarters of the UK level and continue to be propelled by a combination of favourable economic background and demand for houses exceeding the supply,” commented professor Donald MacRae, chief economist at Lloyds TSB Scotland.
“Recent rises in interest rates will have a slowing effect on these house price increases. This latest surge is expected to moderate and may be followed by a decrease in the next quarter.
“This latest increase in Scottish prices may well be the last surge before the much forecasted slowdown,” he added.
The biggest house price increases were seen in Aberdeen where the year-on-year rise was 25 per cent.
