House price surge in small cities

Buyers in the city can now expect to pay an average of £152,050 for a property, a rise of 130% since 2002.

It was the sixth best performing city in the UK, according to a study by the Bank of Scotland.

Aberdeen was placed seventh, while Inverness was named the best performing "millennium" city - towns elevated to city status in 2000.

The survey found that Edinburgh was still the most expensive city in Scotland, with the average house costing £228,212.

In Stirling, figures showed that the value of property had increased by 75% to an average of £171,072 in the last five years.

HOUSE PRICE RISES SINCE 2002

• Dundee: up 130% to average £152,050
• Aberdeen: up 125% to average £200,721
• Inverness: up 106% to average £172,691
• Glasgow: up 102% to average £169,474
• Edinburgh: up 81% to average £228,212
• Stirling: up 75% to average £171,072

However, prices in the Scottish capital had not risen as rapidly in the past five years as other cities.

Armagh, where property prices had increased by 188%, was named the best performing city in the UK.

The Bank of Scotland's chief economist said smaller cities, with a population of less than 300,000, tended to perform better than larger ones.

Martin Ellis added: "The attraction of shopping and leisure facilities, as well as a short commute for workers means that there will always be demand to live in cities.

"Many cities have also benefited from urban regeneration programmes that have seen the wide scale re-development of old industrial areas and canal side warehouses into residential properties.

"The strong performance of Dundee and Aberdeen highlights the fact that homebuyers are looking for attractive places to live in which also offer good transport links, easy commuting and convenient shopping."

RELATED INTERNET LINKS
Bank of Scotland
UK House Price Guide
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