Scottish property market slowing down: Lloyds TSB study |
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Published
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Fri, 18 Nov 2005 18:05
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The property boom in Scotland could be finally taking a breather, as house prices were seen to slow down in a study by Lloyds TSB Scotland.
The bank’s latest House Price Monitor indicates the price of the average domestic property - up 0.8 percent in the period August-October, the lowest rise in 19 quarters when prices were seen to rise steadily. In the previous quarter ending July 31, it had risen by 2.6 percent, suggesting that the boom in Scotland’s property prices could be coming to an end.
An area-wise break-up of the figures, shows Aberdeen property prices having risen the highest – 10 percent taking the average house price to £137,658, which places it at number two on the list. Aberdeen has pushed Glasgow in third place with price at £130,175. Edinburgh meanwhile, remains at the top of the list with the average house price now at £178,078, a small rise of 3.7 percent. The south east follows at £142,272.
Glasgow and Dundee are the two exceptions to the generally upwards movements in the rest of Scotland. Prices in these two areas had actually dropped during the last quarter but surging prices in the earlier part of the year have made the average price show an annual uptrend. On an annual basis, Glasgow indicated a rise of 12 percent while Dundee showed a rise of 30.1 percent.
Despite wide variations across Scotland, one could find clear signs of a slowdown in average house prices “to a level much more consistent with the average annual increase of earnings of 4 to 5 percent” according to Professor Donald MacRae, the bank’s chief economist. He explained that contributing factors like unemployment remained at the lowest levels.
The general situation in Scotland is vastly different from that in the rest of the UK which is struggling with a continuing slowdown in consumer spending whereas in Scotland high street continues to do good business with retail sales at healthy levels and consumer confidence remaining consistently high.
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Head for north, first-time property buyers told 