Lloyds TSB report property price falls in Scotland

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by Kay Murchie

According to the latest Scottish House Price Monitor from Lloyds TSB Scotland, the boom in Scottish property prices has come to an end.

The research showed that property prices in Scotland fell for the first time in 7 years with prices falling by 1.6% in the 3 months to end of January.

Professor Donald MacRae of Lloyds TSB Scotland said though this is the first quarterly fall in the all Scotland average house price for 7 years, all cities and areas outside cities continue to show an annual underlying price increase. The market is showing sensible adjustment after years of price gains above the rate of inflation.

However, Dundee and Edinburgh were the only two cities to record a slight increase in the quarter, with the South West excluding Glasgow the one area outside the main cities to report a small rise.

The research has also established that 86% of Scottish people have aspirations to own a property, considerably more than the 67% who do currently, an aspect which is likely to drive prices higher in the near future.

The average cost of a property in Scotland is now £163,211.