Feb 15 2008
Declining property boom in Scotland
Scotland, Feb 15: The steep rise in the property market over the last few months have come to an end as according to the new Scottish House Price Monitor from Lloyds TSB Scotland. Figures show that after the three month long surge leading to 31 January 2008 the quarterly index has witnessed a fall of 1.6%. The fall is first of its kind over the period of last seven years.
While Dundee, Edinburgh and the south west region other than Glasgow, remain uninterrupted by the slide in the property price and they also showed a small rise. Despite the quarterly figure house prices retained their annual increase. Aberdeen registered 30% increase, along with the northern region other than the city, registered steep rise in the last two quarters. The house prices rose by 20%, in Edinburgh and Glasgow it raised by 18% and 5% respectively.
The Chief economist at Lloyds TSB Scotland, Professor Donald MacRae said: “This is the first quarterly fall in the average house price in Scotland for seven years. All the major cities and the areas outside continue to show an annual underlying price hike. After years of sensible adjustment the price gains over the inflation rate.”
The head of campaigns, James Jopling opined that regardless of the rise several people can’t able to afford the average price of £163,000. It will take much higher prices to make buying the price more affordable again. Initiatives have to be taken to provide more affordable homes to be specific rented homes to encourage buyers in the uncertain economic climate prevailing in Scotland.
