Whilst the latest quarterly figures display a great deal of volatility, the underlying annual increase ranges from +8 per cent in Glasgow to +15 per cent in Aberdeen.
In the three months to 31 October 2006, 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 £145,593. On an annual basis, Scottish house prices have risen by 11.6 per cent. Average prices have now risen for 69 consecutive months.
The largest annual rise is recorded in Aberdeen at +15 per cent. Both Aberdeen and Dundee have shown strong price increases in the last quarter. Meanwhile, Edinburgh and Glasgow, which led the original charge, are now recording quarterly falls and consequently a lower annual rise.
Outside the main cities, annual rises of between +11 and +14 per cent are reported, with the North (excluding Aberdeen) showing the highest quarterly growth figure of +17.5 per cent.
In spite of last quarter’s fall, Edinburgh continues to display the highest average house price at £187,546. In terms of property types across Scotland, the average price of detached houses rose by 8.3 per cent over the year; semi-detached by 11.1 per cent; terraced by 18.0 per cent and flats by 12.1 per cent.
Professor Donald MacRae, chief economist, Lloyds TSB Scotland, said: “The rate of increase of house prices in Scotland has been faster than in the rest of the UK. Relatively low interest rates and a favourable economic background continue to propel the housing market in Scotland upwards. Consumer optimism remains moderate to high; demand for consumer credit strong and unemployment claimant count close to a thirty year low.
“The Scottish house price boom is lasting longer than expected but the recent increase in the cost of borrowing, with perhaps more to come in spring 2007, will ensure the Scottish house price boom gently subsides rather than busts.”
