Scotland business

Scottish house values 'pick up' in late summer

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Image caption Prices recovered in late summer but were still down over the year as a whole

House prices in Scotland rose for the first time this year in the three months to October, according to a survey.

The latest Scottish House Price Monitor from Lloyds TSB found a 1.7% rise between August and October.

But over the year as a whole, the report said property values had still fallen by 2.9%.

The average cost of a Scottish home was £155,805, which is 90% of the figure when prices peaked in 2008.

Edinburgh saw the biggest increase (3.1%) with a home typically costing £179,912, while prices in Aberdeen also increased (2.7%).

South West Scotland, not including Glasgow, saw the largest decrease. House prices fell by 6.8% with properties now costing £135,927.

The number of purchases picked up over the summer months, rising by 8% in the three months to July, but again the figure was down on the same period last year.

Wider economy

Lloyds TSB chief economist Donald MacRae said the housing market reflected what was happening in the wider economy.

He said: "The Scottish housing market has adjusted to the recession with a halving of sales and a period of volatile price movement.

"Average house prices are now 90% of their peak of three-and-a-quarter years ago.

"Consumer confidence remains low due to high levels of retail price inflation in excess of increases in earnings squeezing disposable income.

"The Scottish housing market did recover from the depressed levels at the beginning of the year but the overall number of sales remains at less than half of pre-recession levels.

"A faster recovery awaits a resurgence of both business and consumer confidence."

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