Page last updated at 07:48 GMT, Wednesday, 13 August 2008 08:48 UK

Scots house prices 'still rising'

House sale signs
Sales in Scotland have fallen, but prices are still rising

Scottish house prices have risen again, despite the recent "credit crunch" but actual sales have fallen, according to figures from Lloyds TSB Scotland.

The Scottish House Price Monitor showed that quarterly figures to the end of July rose by 1.6%, giving an average house price of 172,185.

On an annual basis, it means Scottish house prices have risen by 9.3%.

However, the number of house purchases within the Scottish House Price Monitor has fallen by 27% on last year.

'Traditional resilience'

The research found that despite recording a quarterly fall of 2.8%, Aberdeen reported a strong annual increase of 8.8% and the north, excluding Aberdeen, a strong 20.6% increase over the year.

Showing a second quarterly fall of 5.2%, Dundee was still in a strong position with an underlying annual increase of 9.4%.

Annual increase
North - 20.6%
Aberdeen - 8.8%
Dundee - 9.4%
Central/Fife/Perth/Tayside - 9.9%
Edinburgh - 6.7%
South west - 9.1%
Glasgow - 4.4%
South east - 2.3%

Prices in Central/Fife/Perth and Tayside remained static during the most recent quarter while reporting a robust annual rise of 9.9%.

The only cities to demonstrate an increase in their quarterly figures were Edinburgh, at 1.9%, and Glasgow at 0.6%.

All areas in Scotland reported rises in their annual figures, ranging from 2.3% to 20.6%.

Professor Donald MacRae, chief economist at Lloyds TSB Scotland, said: "The price boom of the last five years may well have passed into history but so far the effect of its demise is to slow the number of transactions rather than cause a drop in prices.

"The Scottish housing market is demonstrating its traditional resilience in the face of an economic downturn."

'Rise in repossessions'

Housing charity Shelter said the rises meant many were still struggling to get on the property ladder.

Director Graeme Brown said: "For many would be first time buyers an average house price of 172,000 is still way to much of a stretch, particularly when you consider the average salary is just over 22,000.

"We've already begun to see the impact for all those people who've previously been forced to go beyond their means to buy a home with a reported rise in repossessions - a situation that's only expected to worsen this year."

He added: "We need to make sure we provide enough affordable homes and in particularly rented homes, so people don't have to push the limits of what they can afford, particularly in the current uncertain economic climate."

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25 Jun 08 |  Scotland
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13 Feb 08 |  Business
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07 Feb 08 |  Scotland
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02 Feb 08 |  Highlands and Islands

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