FIRST-TIME buyers have been handed a major boost after the average price of a flat in Scotland plunged by more than 5% over the past year.
The drop gives those who are struggling to afford their first property a much greater chance of getting a foothold on the bottom rung of the ladder.
In some areas of the country, the fall is even more marked, with apartments in mainly rural Dumfries and Galloway down by an average of more than 20%.
Property experts say the market traditionally sags at the end of a year, but these figures show a bigger drop than is usual for this type of property.
Kenny Crawford, director of commercial services at Registers of Scotland (RoS), which compiled the statistics, said: "All house types have seen dips in average price during this quarter but flatted properties showed the biggest decrease at 5.6%. As this is the traditional market for first-time buyers, this drop may be welcome news for those trying to get a foot on the property ladder for the first time."
The figures show the average cost of a flat in Scotland dropped 5.6%, from £123,088 to £116,194, between the end of 2011 and the final three months of last year.
The trend is even sharper in Glasgow, with the average price of a flat down 9.8% year-on-year to £107,494, while in Edinburgh flats sold between October and December last year fetched an average of £176,837 – down 7.5% on the same period in 2011.
Similar properties in Dumfries and Galloway saw the most dramatic plunge, falling by an average of 20.2%, from £93,880 to £74, 928.
While first-time buyers may welcome the fall in the price of flats, it is likely that many will still struggle to save the deposits necessary to enter the market.
The average deposit for first-time buyers in Scotland is now £19,579, almost three times higher than in 2002. The RoS figures also show the average price of a home has dropped by 1.5% to £154,810 compared to the same period a year ago. However, there was an uplift in sales year-on-year, with the number of properties changing hands from October to December rising by 2.7% to 20,355 .
The figures cover all residential sales, including those that did not involve a mortgage.
East Dunbartonshire was the most expensive place to buy in Scotland – a home there now costs £215,300 on average. Edinburgh had the highest volume of sales, with 2189 residential properties selling in the quarter.
Mr Crawford said: "Inverclyde is standing out with some quite unusual statistics for this quarter. Prices there are averaging 21.5% higher than for the same period a year before, with values sitting at £127,410. This is the largest percentage rise in average price by some margin.However, volumes in that area have experienced a 26.6% drop."
He added that judging by the volume of sales over the various price brackets of Scottish properties "the market has been reasonably stable over the last four years now".
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