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Wednesday, 9 October, 2002, 10:25 GMT 11:25 UK
Scots house prices trailing
![]() Scotland's weak economy is blamed for price gap
House prices in Scotland continue to lag behind the cost of homes in England and Wales, according to the latest survey.
Slower growth in prices north of the border has led to a doubling of the gap over the last two years. The average price of a house in Scotland is now more than £44,000 below the UK average - and £138,000 below the London average. The comparisons are in the latest Quarterly Scottish House Price Index from the Bank of Scotland.
That compares to 21% over the UK. The average house price in Scotland now stands at £68,648 compared to the UK average of £113,035.
But overall Scottish prices are expected to continue their rise on the back of forecasted low borrowing rates. Martin Ellis, Bank of Scotland's group economist, said: "The smaller rise in house prices in Scotland compared with the rest of Britain has mainly been due to the relative underperformance of the Scottish economy. Technical recession "The most recent figures from the Scottish Executive show that Scotland's gross domestic product fell by 0.7% in the first quarter of 2002, whilst GDP in the UK increased by 0.2%. "The poorer economic climate has mainly been caused by a much deeper recession in Scotland's manufacturing sector compared with the rest of the UK." Mr Ellis said the lower level of prices had a positive side-effect. It should underpin housing demand in Scotland over the coming months. Evidence suggests that Scotland's economic health is improving with the economy seemingly recovering from its `technical' recession at the start of the year. These factors, combined with the likelihood that interest rates will remain at historically very low levels, are expected to support a further acceleration in house price inflation north of the border. |
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04 Oct 02 | Business
02 Oct 02 | Scotland
02 Oct 02 | Business
01 Oct 02 | Business
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