Scottish house prices fall

House prices in Scotland fell by 2.1 per cent in the last year and 4.3 per cent in the three months to April 30th.

The average mix adjusted Scottish house price is now £148,990, with the volume of house price transactions down 35 per cent on levels recorded for the same period last year.

The figures, out today from the Scottish House Price Monitor from Lloyds TSB Scotland, show in the three months to April 30th the quarterly price index for the average domestic property in Scotland fell by 4.3 per cent.

Professor Donald MacRae, chief economist, Lloyds TSB Scotland, 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."

The figures also highlighted the purchase of flats had fallen by 39 per cent, with semi-detached sales down 28 per cent. However, Lloyds discovered the "picture across the country remains very mixed" with two areas reporting a small annual rise in comparison to significant falls elsewhere.

Price rises were also recorded in April, with house price transaction numbers rising in both March and April.