House price surge 'could be last'

The price 'spike' has been partly attributed to concerns over rising interest rates prompting buyers to rush to take up low fixed-rate mortgages.

The low number of properties on the market may also have contributed to the rising purchase prices.

The house price study by Lloyds TSB Scotland says average house prices have risen for 75 consecutive months.

In the three months to the end of April, it said the price of an average domestic property in Scotland rose by 6.8%.

ANNUAL PRICE RISE

• Aberdeen 25%
• North 15%
• South East 13%
• South West 13%
• Edinburgh 12%
• Central/Fife/Perth/Tayside 11%
• Dundee 9%
• Glasgow 7%

The largest increase was in Aberdeen, where prices rose by 18.2%, while there were rises of 15% in Edinburgh and 12.5% in the south east.

The Lloyds TSB Scotland House Price Monitor study claims Scottish house prices have risen by an average of 11.9% in the last year.

Aberdeen recorded the largest average annual rise at 25%, and the figures for the north of Scotland suggest that Aberdeen's boom may be having affect on house prices in the surrounding area.

The cities of Edinburgh, Dundee and Glasgow also showed annual increases of 12%, 9% and 7% respectively.

"This latest increase in Scottish prices may well be the last surge before the much forecasted slowdown."
Donald MacRae, Lloyds TSB Scotland

Professor Donald MacRae, the chief economist at Lloyds TSB Scotland, said: "Recent rises in interest rates will have a slowing effect on these house price increases.

"This latest surge is expected to moderate and may be followed by a decrease in the next quarter.

"This latest increase in Scottish prices may well be the last surge before the much forecasted slowdown."

Strong figures

Scott Brown, a partner at property solicitors Warners, was more confident: "There's no real cause to believe the market will slow down over the rest of the year.

"Certainly, all the signs we have seen this year is that the market is continuing to grow.

"I am confident we will continue to see strong figures over the next quarters of the year."

The Lloyds TSB Scotland House Price Monitor claims to be the only house price comparison index to focus exclusively on Scotland.

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