Scottish Property News

Scottish property market 'starting to show signs of recovery'

Only Glasgow, with a 5.9% increase, and Dundee, up 22.9%, went against the trend, according to the latest Scottish House Price Monitor from Lloyds TSB.

It showed there was an average 1.4% price drop in the three months to the end of July. However, this was substantially less than the 4.3% fall in the previous quarter.

The average price of a home in Scotland fell from GBP154,727 to GBP152,561, while the statistics showed Scottish house average prices have fallen 6.2% over the year.

The number of properties sold in the three months to the end of July was 38% lower than the same period in 2008, with the number of sales reaching its lowest point in May.

But since then there has been an increase in sales, with July seeing 35% more transactions than there were in May.

Professor Donald MacRae, the chief economist for Lloyds TSB Scotland, said: "There are positive signs that not only has the bottom been reached but that a recovery is beginning to take root.

"The cost of borrowing has reduced for many mortgage holders while there is a small but per ceptible increase in the level of mortgage availability particularly for first-time buyers."

He went on: "The worst of the housing market downturn has been experienced by falling transactions and an easing of prices but no precipitous collapse.

"The Scottish housing market is on the turn"