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   Web Issue 3278 October 14 2008   
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Scottish house prices up 7% over last year
STEWART PATERSONMay 16 2008

House prices in Scotland have increased by more than 7% over the last year, according to the most comprehensive official statistics.

The average cost of a property in the first three months of the year was £150,257 - 7.4% higher than in the same period of 2007.

The figures from the Registers of Scotland, including every house sale in the country, showed there was a drop in the volume of house sales and total value of purchases, but average prices continue to rise despite lenders reporting poorer performance in other parts of the UK.

Average prices increased by more than £10,000 between January to April 2007 and January to April 2008. The highest average prices are to be found in Lothian, including Edinburgh, where prices went up by almost 5% to £187,316.

Grampian, including Aberdeen, recorded the biggest annual increase, with prices jumping 13.8% to an average £172,930. The largest market, however, was Glasgow where sales totalled £1.3bn, a fall of £121m compared to the same quarter last year.

Overall in Scotland, sales for the quarter totalled £4.1bn, down 9.9% on the previous year. The Registers of Scotland divides the country into seven areas and all areas recorded an increase in property prices.

Average prices range from £131,044 in south-west Scotland to £187,316 in Lothian. Experts have been predicting modest house price growth for Scotland in the coming year as the UK prepares for a fall.

Geoff Lockett, partner at estate agents Strutt and Parker, said nervousness fuelled from the south of England meant fewer properties were on the market.

He said: "It's good news for Scottish homeowners, not so great for solicitors. Property speculation has virtually ground to a halt, investment is massively reduced. That's why there are fewer properties coming on the market.

"The supply and demand balance remains because fewer people are buying and selling. I think the next 12 months will be a steady market with no significant growth or decline. It wouldn't surprise me if the English market reduced in value."

Earlier this week, official figures revealed prices in Scotland were continuing to grow ahead of the rest of the UK. The value of properties north of the border rose 9.3% in the year to the end of March, compared with an increase of only 5.2% across the rest of the UK, according to the figures compiled by Communities and Local Government.

However, the Council of Mortgage Lenders, which will publish its Scottish figures next month, warned mortgage lending in the UK had fallen to its lowest for more than 30 years. The number of loans for house purchases dropped to 142,300 between January and March. This compared with 237,600 in the first quarter of last year and was the lowest since the first quarter of 1975.

Last year, UK prices fell by 1%, according to the Halifax, but the biggest growth area was Scotland. The bank said it expected to see a UK fall of around 5% in the coming year, but prices in Scotland continuing to grow.


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Posted by: Graham, Larbert / Kazakhstan on 3:23am Fri 16 May 08

Another very "Positive spin" headline............
........

Why ? .............

"The Herald" should Know better. Scotland lags behind in financial terms, catching up or slowing down to Englandshires' level is just round the corner.

Posted by: martin, edinburgh on 11:28am Fri 16 May 08
why's this good news? petrol and food's went up a fair bit too, but that's not good news is it? Hurray my larder's worth 7% more than last month!

I've calculated that even as a recent buyer a 10-20% drop in prices would be beneficial. It would still leave me with enough equity not to have to get a 95%+ mortgage, plus the next rung up the ladder will have dropped more in absolute terms making it more affordable for me.
Posted by: Corrupt EU, Fife on 4:27pm Fri 16 May 08
Yeah right. That's why four houses in my street have had 'for sale' boards in their front gardens for months. A couple of them have even dropped their asking prices. SNP/Lab spin!

Batten down the hatches, because we're entering a depression. Buy gold and demand the right to keep and bear arms. Shop lifting has already increased. Imagine what a full blown depression will look like! Feral youths will kill when the situation gets desperate. Food price rises and food shortages; fuel poverty; repossessions and homelessness; unemployment. Mortgage free home owners like us will be obvious targets.

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