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Scottish housing market in slow recovery

17 May 10 23:13 GMT

House prices in Scotland rose in the last quarter by 0.7% but over the year fell by 3.3%, according to Lloyds TSB Scotland.

The bank said February was a slow month for sales, although transactions picked up again in March and April.

The number of homes being sold was down 19% compared with the previous quarter.

Over the past year, Dundee and Aberdeen seem to have shown the best recovery, with prices in Glasgow still down by about 8%.

Lloyds said price movements in the latest quarter remained volatile.

Professor Donald MacRae, chief economist of Lloyds Banking Group Scotland, said: "The level of mortgage availability including for first-time buyers has increased while the cost of borrowing remains low for many mortgage holders.

"The rise in the average Scottish house price identified at the end of last year has not been maintained into 2010. However, activity has picked up from the low levels of the winter months."

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