20 things

Lloyds TSB Scotland’s House Price Monitor

18 August 2007

1 The Lloyds TSB Scotland House Price Monitor for the second quarter of 2007 indicated that the quarterly price index for the average domestic property in Scotland rose by 1.7 per cent.

2 As a result, average mix-adjusted Scottish house prices stood at £162,779 for the second quarter of 2007, the findings revealed.

3 On an annual basis, Scottish property prices rose by 13.2 per cent.

4 Average property prices have risen for 78 consecutive months, according to the report.

5 Aberdeen recorded the largest annual rise, increasing by 32 per cent.

6 The North of Scotland, excluding Aberdeen, also reported a strong annual rise of 21 per cent.

7 However, the South East, excluding Edinburgh, recorded a fall of 10 per cent between April-June, indicating both highs, and lows within the wider Scottish housing market.

8 Dundee gained 16 per cent over the last 12 months, the report indicated.

9 Edinburgh remained consistently strong, with a 15 per cent rise in the last year.

10 Of the main Scottish cities, only Glasgow demonstrated clear signs of a slowdown.

11 Glasgow experienced a quarterly fall in prices of 1.2 per cent, according to the Lloyds TSB Scotland index.

12 The monitor also suggested that Glasgow had a relatively modest annual rise of 5 per cent.

13 Professor Donald MacRae, chief economist at Lloyds TSB Scotland, commented: “We witnessed a significant surge in property prices in the previous quarter, which goes some way in explaining the range of quarterly results in the current quarter.”

14 However, he added: “Although there is wide variation in price changes across Scotland, there is clear evidence that the Scottish house price boom is coming to an end. Recent interest rate rises and increases in the cost of borrowing are clearly having an effect.”

15 He added: “The rate of increase of property prices in Scotland has slowed significantly but a fall in house prices remains unlikely. The Scottish housing market may be down, but it is certainly not out.”

16 The Lloyds TSB Scotland House Price Monitor was established in 1992.

17 The monitor is the only such index in the market devoted exclusively to Scotland.

18 The house price index is adjusted for changes in geographic area, property type and season.

19 Information used in the index excludes local authority purchases and remortgages.

20 The annual price change is measured by the average of the latest four quarters expressed as a percentage of the preceding four quarters.

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