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Last Updated: Saturday, 10 July, 2004, 08:32 GMT 09:32 UK
Huge rise in Scots house prices
Estate agent
Prices have continued with strong growth
Scottish house prices have increased by almost 12% in the biggest quarterly rise on record, according to figures.

And prices are expected to rise by 18% over the course of the year, compared with a UK forecast increase of 16%.

The Bank of Scotland figures also showed Kirkcaldy, Airdrie and Kilmarnock making it into the top 10 of UK property hotspots.

The average house price in Scotland is said to be 95,730 after an 11.9% increase over the spring quarter.

The figures were issued by the Bank of Scotland arm of the HBOS group.

Prices are now 23.1% higher than a year ago, after rises of 17% last year and 11.6% in 2002.

We expect house price inflation north of the border to ease back over the rest of the year
Tim Crawford
Bank of Scotland
Most towns across Scotland recorded big increases over the last 12 months with rises of 53% in Kirkcaldy, Fife, 49% in Airdrie, North Lanarkshire, and 44% in Kilmarnock, Ayrshire - putting those towns in the top 10 of UK property hotspots.

House prices remain highest in Edinburgh, where the average home costs 187,485, or 13% more than a year ago.

This compares with a UK average of 157,251, which is also outstripped by the Lothian average of 167,612, said the bank.

Bank economist Tim Crawford said: "House prices increased by almost 12% in the second quarter which is the highest quarterly rise we have seen in Scotland.

"Scottish housing trends traditionally react slower than the UK average and we expect house price inflation north of the border to ease back over the rest of the year."

Q2 ANNUAL INCREASES
Borders: 134,647 43% up
Central: 115,210 28% up
Dumfries and Galloway: 112,278 11% up
Fife: 112,628 18% up
Grampian: 123,807 24% up
Highland: 128,432 36% up
Lothian: 167,612 14% up
Strathclyde 116,176 24% up
Tayside: 128,049 43% up

Source: Quarterly Scottish House Price Index
The spring quarter saw Fife break through the 100,000 barrier and Lothian through the 150,000 barrier for the first time.

Average prices in Kirkcaldy are now 113,444 compared to just 74,3000 in the spring of last year.

And construction of the new M77 extension has pushed prices in Kilmarnock up by 44% to 100,895 as the town becomes more attractive for commuting to Glasgow, the bank said.

House prices in Glasgow went up by 24% over the past year to an average 130,129, and high prices in Edinburgh have forced many buyers to look at West Lothian, putting pressure on prices there.

In Aberdeen an average house costs 114,670, up 12% since last spring.

In Dumfries and Galloway houses cost an average 112,278.

And Tayside and the Borders both saw prices rise by 43% over the year - in Tayside's case to 128,049, and to 134,647 in the Borders.


SEE ALSO:
Northern house prices surge ahead
10 Jul 04  |  Business
House sales break 13bn barrier
19 May 04  |  Scotland
First-time buyers 'give up hope'
22 Apr 04  |  Scotland
Scottish house prices accelerate
13 Apr 04  |  Scotland


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