Scottish Property News

Property prices down by 4.3per cent in year's first quarter

The average cost of a home dropped in each of the first three months of this year although April was marked by a rise, Lloyds TSB reported.

The bank's house price monitor recorded a 4.3per cent fall in prices for the first quarter. This brought the average cost of a home in Scotland to GBP148,990.

This compounds a slide in prices of 2.3per cent at the end of last year.

Dundee and the north of Scotland saw the steepest drop in prices since January of 17.5per cent and 16per cent respectively.

The region encompassing Fife, Perth and Tayside was the only area to see a rise, and this was recorded at 9.6per cent.

The overall number of house purchases is down 35per cent on the same period in 2008, with flats faring the worst.

Lloyds TSB Scotland chief economist Professor Donald MacRae said the market was continuing to adjust to changes in the economy but was so far avoiding a "precipitous collapse".

He said: "The Scottish economy is now firmly in recession.

"Consumer confidence has fallen and claimant unemployment has risen.

"However, there is evidence of consumer confidence marginally improving while retail sales continue to increase on an annual basis.

"The cost of borrowing has reduced for many mortgage holders while there has been a slow but perceptible increase in the level of mortgage availability for first-time buyers.

"The Scottish housing market continues to adjust to changing circumstances with reduced sales, lower prices, but no precipitous collapse."