Property prices rally after slump

Reporter

Wednesday 13 March 2013

HOUSE prices in Scotland rallied at the start of the year to help put the brakes on the slide of last year.

Custom byline text:

Jody Harrison

The annual LSL Property Services/Acadametrics house-price index shows prices rose by more than £1000 at the start of 2013.

But the boost comes after values tumbled by an average of £4000 in 2012.

Gordon Fowlis, of estate agency Your Move, warned 2012's market had been volatile, restricting growth.

He said: "The crux of the problem is weak mortgage lending. Demand for mortgages is falling, and the supply of them remains painfully tight. And Scotland is more exposed to public sector cuts than England and Wales." The survey found the average property price in Scotland at the start of the year was £141,866, down from £145,880 a year earlier.Price rises were recorded in one-third of Scotland's 32 council areas, including East Renfrewshire, Argyll and Bute, and Dundee.The highest rise was in the Western Isles, where an average property went up from £96,046 to £102,575. In Glasgow, prices fell by 8.8%, from £129,826 to £120,940The picture is further skewed because the rate of decline reached double digits in South Lanarkshire, West Dunbartonshire, North Ayrshire and Orkney.Michael Luck, of estate agents Slater Hogg & Howison, advised reading the figures with caution: "Do we think every house in Scotland fell by 4.2%? No, we don't," he said. "Some types of housing have increased."Andrew Smith, from Strutt & Parker, said: "There are areas of strength - which have proved resilient in the past year, such as Edinburgh, East Lothian, Aberdeen and Aberdeenshire." He added that the top end of the market had been busy so far this year.

Contextual targeting label:

Finance

Commenting & Moderation

We moderate all comments on HeraldScotland on either a pre-moderated or post-moderated basis. If you're a relatively new user then your comments will be reviewed before publication and if we know you well then your comments will be subject to moderation only if other users or the moderators believe you've broken the rules, which are available here.

Moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours. Please be patient if your posts are not approved instantly.

Property prices rally after slump

Commenting & Moderation

MOST READ

SPONSORED LINKS

MOST COMMENTED