According to figures released by the Registers of Scotland, the average price dropped in Q1 2007 to £139,836 from £143,055 in Q4 2006.
The fear was also acknowledged by Lloyds TSB Scotland’s quarterly index, despite the lender recording unusually high growth in February-April 2007.
Professor Donald MacRae, chief economist for Lloyds TSB Scotland, commented: “Recent rises in interest rates will have a slowing effect on these house price increases. This latest surge is expected to moderate and may be followed by a decrease in the next quarter. This latest increase in Scottish prices may well be the last surge before the much forecasted slowdown.”
According to Lloyds TSB Scotland, the average property price in Scotland rose by 6.8 per cent in the three months to April, with Aberdeen being the leading hotspot with a quarterly rise of 18.2 per cent in prices.
However, Ross Keany, associate director of group communications at Bank of Scotland, said: “The Registers of Scotland figures should be taken with a pinch of salt as they are not seasonally adjusted, and you can get some wide fluctuations which are not a fair reflection of the market. If you look at the annual figures, they show growth near to 12 per cent so there is life in the market yet.”
