In the three months to 31 July 2005, the quarterly price index for the average domestic property in Scotland rose by 2.6 per cent to give an average mix adjusted Scottish house price of £128,497. Average prices have now risen steadily for 18 consecutive quarters.
Dundee leads the field with a quarterly rise of 20 per cent and an annual rise of 27 per cent, the highest increase in Scotland.
The area surrounding Dundee posts the next most significant growth with Central, Perth, Tayside and Fife showing an annual rise of 23 per cent despite posting a quarterly fall of 2.1 per cent.
There are exceptions at the top end of the market with Aberdeen and Glasgow posting quarterly falls of 3.1 and 2.6 per cent respectively. However, both cities showed significant growth in previous quarters, and with increases of 17 and 23 per cent respectively over the year, this represents a slow down rather than anything more dramatic.
Having reached a standstill earlier in the year, Edinburgh house prices have now resumed modest growth with a quarterly rise of 6.2 per cent. However, the capital city does post the lowest annual rise at 13 per cent, having entered first into the house price boom.
Edinburgh still has the highest average house price at £167,357, followed by Glasgow at £142,945, Aberdeen at £129,058 and Dundee at £121,133.
Professor Donald MacRae, chief economist, Lloyds TSB Scotland, said: "The Scottish housing market has become less uniform with different price behaviours evident across the country. Despite low growth, the economic environment for the Scottish housing market remains benign with the lowest claimant unemployment for 30 years, robust levels of retail sales and continuing high levels of consumer confidence all keeping the Scottish housing market firm.
"House buyers will be further encouraged by the recent cut in interest rates while the demand for houses continues to exceed supply. However, house prices cannot continue rising indefinitely at a rate faster than the increase in earnings, although a slowdown in the rate of price increase seems unlikely this year."
