Scottish property boom wanes 'gently'

21 August 2006
The housing market boom in Scotland has waned, though property prices continue to rise, the latest home survey has revealed.

Conducted by Lloyds TSB Scotland, the quarterly House Price Monitor indicates that prices north of the border increased by 1.1 per cent in the three months from April to June this year, bringing the average home value to £141,338.

Property prices in Scotland have now risen for 66 consecutive months.

"The Scottish house price boom is subsiding, but gently," remarked the chief economist at Lloyds TSB Scotland, Professor Donald MacRae.

The fact that the economy in Scotland has continued to grow above forecasts has softened the blow, he explained, going on to predict that demographic factors will have a significant bearing in the years ahead.

"The main driver of the housing market in Scotland remains changes in the population," Professor MacRae said. "The total number of households in Scotland is projected to grow by 11 per cent up to the year 2024."

Over the past 12 months, property prices have risen most sharply in Dundee and Aberdeen, at 17 per cent, yet both cities saw house values dip in the second quarter of the year, by 0.4 per cent and 2.4 per cent respectively.

House prices remain highest in Edinburgh, where the average home costs £186,648. The capital experienced property price inflation growth of 1.3 per cent in the second quarter.

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