Scottish property market 'past the worst of the downturn'

Monday, November 16th 2009

The Scottish housing market is showing signs of being past the worst of the overall downturn in the property sector, according to a new report.

Lloyds TSB Scotland's latest Scottish House Price Monitor shows that average domestic property values rose by 0.7 per cent in the third quarter compared with the previous three months.

The average cost of a home in the country is now £153,605. However, prices have fallen by 7.5 per cent since the same period last year.

Lloyds TSB Scotland also revealed that house purchase transactions have dropped by 32 per cent compared with 2008.

Professor Donald MacRae, chief economist for Lloyds Banking Group Scotland, commented: "The cost of borrowing has reduced for many mortgage holders, while there is now a perceptible increase in the level of mortgage availability, including first-time buyers."

Recent figures from Communities and Local Government showed a 0.9 per cent fall in Scottish house prices in September compared with the same month last year.