Edinburgh property market slows

13 May 2004
House prices may be continuing to rise across most of Scotland, but the country's original property hot spots, Edinburgh and Aberdeen, are showing signs of slowing.

According to new from Lloyds TSB Scotland House Price Monitor, which shows that cities such as Glasgow and Dundee are now catching up with the housing booms of Edinburgh and Aberdeen.

The Lloyds TSB Scotland House Price Monitor, the only index devoted exclusively to Scotland, also shows that Scottish house prices have now risen for the 13th consecutive quarter, with a rise in the quarterly price index of 1.6 per cent for the first three months of this year.

Professor Donald MacRae, chief economist for Lloyds TSB Scotland, said: "These latest findings suggest that while the housing market is continuing to record robust price increases, there may be the beginnings of a slowdown in the cities which led the initial rise."

With annual growth slowing to 14 per cent in Aberdeen and to five per cent in Edinburgh, the latest survey suggests these cities are starting to slow down, while the rest of the country plays catch-up.

On an annual basis, Scotland has witnessed a rise in house prices of 19 per cent.

Professor MacRae continued by saying: "Domestic property transactions have increased steadily since 1997 and are now 52 per cent higher than a decade ago.

"However, the increased cost of borrowing should eventually see the rise in property prices return to levels more closely linked with the average increase in earnings."