However, house prices across the country are still rising.
Detached properties record an annual rise of +8.4 per cent and semi-detached +10.2 per cent, while lower priced properties continue to show stronger rises of +16.5 per cent for terraced dwellings and +11.3 per cent for flats.
In the three months to 31 January 2007, the quarterly price index for the average domestic property in Scotland rose by 3.3 per cent to give an average mix adjusted Scottish house price of £147,763. On an annual basis, Scottish house prices have risen by +11.0 per cent. Average prices have now risen steadily for 72 consecutive months.
The largest annual rise is recorded in Aberdeen at +18 per cent. However, as this follows a slowdown in the spring of 2006, it provides an indication of the volatility that exists quarter to quarter. The north of Scotland (excluding Aberdeen) reported a quarterly fall, as did Dundee, but both of these follow significant rises in the previous quarter.
Outside the main cities, annual rises of between +10 and +14 per cent are reported, with prices in the south-east and south-west demonstrating more stability than elsewhere in the country. The south-west (excluding Glasgow) is the most stable part of Scotland showing regular consistent rises with no fall in price in the last six years.
Professor Donald MacRae, chief economist, Lloyds TSB Scotland, said: “The rate of increase of house prices in Scotland continues at a robust pace propelled by a favourable economic background and demand for houses exceeding the supply. First-time buyers are showing increased interest in the market. The robust annual increase in retail sales and low levels of claimant unemployment continue to reinforce consumer confidence. The Scottish economy is forecast to show growth of around 2.25 per cent in 2007.
“However, there is clear evidence of a slowdown in price increases at the higher end of the market. Recent increases in interest rates will continue to moderate further house price rises from these high levels. The prospect for the Scottish housing market is a gentle slowdown in the rate of price increase.”
