Scottish house prices cool
Published On 15 February 2008
People looking to purchase properties in Scotland might not need such large mortgages in the future, as the latest data suggests that house price growth in the country could be slowing.The latest Scottish House Price Monitor from Lloyds TSB Scotland showed that house prices in the country fell by 1.6 per cent during the three months to the end of January.
This is the first time in seven years that all regions in Scotland reported an average drop in prices.
As a result, the average house in the country now costs £163,211.
"The market is showing sensible adjustment after years of price gains above the rate of inflation," explained Professor Donald MacRae, chief economist at Lloyds TSB Scotland.
"The prospects for the Scottish housing market are for a plateauing of prices during 2008 following the significant gains in the last five years. The Scottish housing market is pausing for breath."
Slowing house price inflation will be good news for first-time buyers, who have struggled to afford mortgages in recent years.
The most recent data from the Council of Mortgage Lenders (CML) indicated that these people were having to spend an average of 20.7 per cent of their income servicing the interest on their mortgage in December last year.
