Prices boom in Scotland

Posted: 16 Nov 2007 17:31:21 GMT

The Scottish housing market is booming, with Aberdeen recording particularly strong growth in October.

The Scottish housing market is booming, with Aberdeen recording particularly strong growth in October.

That is according to Lloyds TSB, which has published its House Price Monitor for the country.

It points out that the average property price in Scotland reached £168,559 in the month, with annual inflation hitting 14.5 per cent.

Aberdeen saw growth of 34 per cent, while the rest of the north, excluding Aberdeen, saw inflation of 22 per cent.

Prices increased by 3.6 per cent in the three months leading to October 31st and professor Donald McRae from Lloyds said that the market is in good health.

"There is no evidence of any crash in Scottish house prices. Rather, the Scottish housing market continues to show robust annual increases in excess of inflation," said the chief economist.

"However, the slight decline in the quarter in Edinburgh prices may yet be replicated around Scotland when interest rate rises and increases in the cost of borrowing take full effect.

"The increase in Scottish house prices needs to slow. However, this will happen as a gentle slowing in price as opposed to an abrupt fall," he added.

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