According to the latest Scottish House Price Monitor report from Lloyds TSB Scotland the housing market there seems to be recovering. Most areas are seeing property growth with average house prices increasing by 5.9% in the three months to the end of January compared with the previous three months.
The report also shows that although house prices are now … rising once more, on an annual basis they have fallen by 6.8%. Following four quarterly price falls and two recent consecutive quarterly rises, Scottish house prices have regained the level last seen at the end of 2008. However, the number of house purchase transactions is still around half of the levels recorded before the onset of the recession.
Professor Donald MacRae, chief economist, Lloyds Banking Group Scotland commented, “The level of mortgage availability including for first-time buyers has increased while the cost of borrowing remains low for many mortgage holders. Although a house price recovery is evident in Scotland, it is based on much reduced levels of activity. Nevertheless, the Scottish housing market is now into recovery.”