Scotland's housing market remains 'muted', says bank report

Homes covered in snow A small number of sales were experienced during the festive period

Related Stories

Scotland's housing market remains "muted", with only a slight rise in prices over the last year, according to a report from Lloyds TSB Scotland.

The average price of a property rose by 0.2% to £151,320 during 2012.

But the number of sales fell towards the end of the year because of a small number of festive-period sales.

The TSB's Donald MacRae said: "The Scottish housing market had adjusted to the recession with a halving of sales and a period of price volatility."

Lloyds TSB Scotland's report also found that the Scottish House Price Monitor, a quarterly index of average house prices adjusted for location, property type and season, fell from 290 to 287 between November 2012 and January this year.

The index is measured from a base rate of 100 when it was first recorded in 1996.

"There is evidence of a muted pick-up in the number of houses bought and sold in the last quarter of 2012, with average prices now at 89% of their pre-recession peak," said Mr MacRae.

'Negative territory'

The report, compiled from business done by the the bank itself, said buyers' confidence has also dipped as many see house price inflation rising above their earnings.

"Consumer confidence turned negative at the beginning of 2011 and remained negative for 21 of the 24 months to the end of 2012," added Mr MacRae.

"The latest figure for quarter four 2012 shows a return to negative territory.

"Consumer confidence remains low, with the level of retail price inflation exceeding the average increase in earnings squeezing disposable income.

"The rate of increase in consumer spending remains modest."

Mr MacRae believes there could be a "modest pick-up" in housing market activity if mortgages are made more available and prices remain at their current levels.

More on This Story

Related Stories

More Scotland stories


Features & Analysis

  • Cartoon of women chatting on the metroChat wagon

    The interesting things you hear in a women-only carriage

  • Replica of a cargo boxSpecial delivery

    The man who posted himself to the other side of the world

  • Jon Sopel'Emailgate'

    Hillary gets a taste of scrutiny that lies ahead

  • Beauty contestants use selfie stick7 days quiz

    Who hasn't banned selfie sticks yet?

Elsewhere on the BBC

  • Audi R8Best in show

    BBC Autos takes a look at 10 of the most eye-catching new cars at the 2015 Geneva motor show


  • A robotClick Watch

    The latest in robotics including software that can design electronics to solve problems

Try our new site and tell us what you think. Learn more
Take me there

Copyright © 2015 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.