Scotland has seen the first quarterly fall in house prices for seven years, according to Lloyds TSB Scotland.
The bank’s regional arm’s Scottish House Price Monitor reveals the boom in Scottish house prices has come to an end.
The average domestic property fell 1.6 per cent to give an average mix adjusted price of £163,211. On an annual basis, Scottish house prices have risen by 14 per cent.
Dundee and Edinburgh were the only cities to see an increase in the quarter, with the South West, excluding Glasgow as the one area outside the major cities to see slight rises.
Lloyds TSB Scotland chief economist Professor Donald MacRae says: “Though this is the first quarterly fall in the all Scotland average house price for seven years, all cities and areas outside cities continue to show an annual underlying price increase. The market is showing sensible adjustment after years of price gains above the rate of inflation.
“As the total population in Scotland increases with less people per household, people living longer and marital break-ups, the number of households in Scotland is projected to increase over the next 20 years. Aspirations for home ownership show 86 per cent of people would prefer to own their own house. There is enough demand for housing to put owner occupation beyond the current level of 67 per cent.”