The Scottish residential property market has seen house prices fall by 1% in the 3 months ending in January this year, according to Lloyds TSB Scotland’s Scottish House Price Monitor.

However, year on year figures show that prices have actually risen by 0.2%, with the average residential property price standing at £151,320 – which is 89% of their highest point before the recession took hold in 2008.

The data has come from a relatively low number of house transactions, says Lloyds TSB Scotland. The Monitor shows that property purchases are down by 17% in the most recent quarter compared to the previous one. Year on year, transactions were down by 8%.

Prices remain volatile and differ substantially depending on what region is being looked at. Edinburgh, for instance, has seen house prices rise by 11.5% year on year, averaging £211,247 per sale. At the other end of the spectrum, south western Scotland has seen average the house price go down to £131,512.
Other areas enjoyed a rise, including the north, by 0.8%, and the south, by 1.2% – reaching an average of £157,319. An increase of 1.9% was experienced by the property market in the Central,Fife, Perth and Tayside region.

Donald MacRae, chief economist of Lloyds TSB Scotland said of the data: “The Scottish housing market remains largely muted entering 2013.”
While prices remain relatively unstable, for landlords and let property insurance customers who are considering sales in the near future will be heartened by news that house prices are at 89% of their pre-recession peak, a situation that many thought unlikely to have occured so soon.

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