Scottish house prices fall by £1,982 over year

Sam Cordon

June 19, 2013

The average house price is now £143,965 but prices are now £2,430 higher than they were in December 2012.

Alan Penman of Walker Fraser Steele said: “Despite the brightening housing market in England the picture is not as glowing for Scotland.

“The strain on borrower finances has been more pronounced north of the border which has meant fewer people have been able to get a mortgage.

“Deposit requirements are still substantial and borrowers are struggling to swim against the tide of high inflation, low savings rates and weak wage growth.

“There has been uplift in first-time buyer activity in recent months in part due to various government schemes designed to make it easier for people to borrow – particularly high LTV borrowers.”

As a result sales in April have surpassed forecasts rising 14%, which reflects the improving mortgage market.

Traditionally March and April are the busiest months of the year due to the boost in temperatures, better weather and longer days resulting in a lot of property sellers viewing it as prime time to get their properties on the market.

But Penman warned that big regional variations remain.

Penman said: “In some areas prices are soaring while at the same time suffering in less affluent ones.

“Equity rich buyers continue to dominate activity which has led to a clear divide in the market.

“Fortunately the next few months should see further improvements in first-time buyer numbers which should help begin to equalise the regional variations in sales levels. Conditions for first-time buyers are vastly improved compared to six months ago.”

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