Property News Item: 00110

28th Apr 2006

Scottish House Price Index - First Quarter 2006

Source: http://www.hbosplc.com

Bank of Scotland: Scottish House Price Index - First Quarter 2006

All Houses, All Buyers Index (1983=100)
Scottish Index (seasonally adjusted) 393.9
Quarterly Change (Q1 2006 on Q4 2005) 0.8%
Annual Change (Q1 2006 on Q1 2005) 6.9%
Standardised Average House Price in Scotland (seasonally adjusted) £113,955

Key Points

* The annual rate of house price inflation in Scotland is now 6.9%, above the UK average of 6.2%. Prices in Scotland rose by 0.8% in Q1 2006.

* Over the past five years house prices in Scotland have risen by 85%.

* The average price of a house in Scotland is currently £113,955. This is 34% less than the UK average of £172,979.

* Cupar (36%) and Lochgelly (30%) in Fife recorded the largest increase in house prices in Scotland and also across Great Britain over the 12 months to March 2006.

* Four Scottish towns have an average house price below £100,000 Lochgelly (£84,800), Kelty (£86,962), Greenock (£96,181) and Clydebank (£99,640).

* Over the past five years prices rose the most in Lanark in Lanarkshire with a 190% increase to £156,018.

* Greater London prices are now 2.3 times higher than those in Scotland, compared with 3.0 times in Q1 2003.

Tim Crawford, Group Economist for Bank of Scotland, comments: "The housing market in Scotland is undergoing a measured slowdown. Annual house price growth was 6.9% in the first quarter of 2006, compared to 23.0% growth a year ago. Despite the slowing price trend, Scotland is still performing better than the UK average and we anticipate that this trend will continue over the course of 2006. Scotland's relative affordability is a key positive for the local market.

* Cupar in Fife saw the highest house price rise in Scotland and also Great Britain over the past year with an increase of 36% to £159,332, followed by Lochgelly, also in Fife, where prices grew by 30%. Despite this increase, Lochgelly remains the most affordable town in Scotland with an average price of £84,800.

* Aberdeen has seen a 20% rise in its average house price over the past year to £141,280. A firm local economy in the Granite city, driven by rising energy prices, has boosted employment and this is now having a positive impact on house prices.

* Lanarkshire also continues to see strong house price increases with its good transport links to Glasgow attracting buyers. In Coatbridge prices have risen by 27% for the year to £119,732. In Lanark prices are up 25% for the year to £156,018. Over a five year period, Lanark has far and away been the strongest performer in Scotland. Prices in the Royal Burgh have risen by 190% since 2001, from £53,801 to £156,018.

* Edinburgh retains its position as the most expensive city to buy a house in Scotland. Prices in the capital rose a modest 3% over the year to £184,240. In Glasgow prices are up 7% over the year to £139,931.

* By local authority the most expensive place to buy a house remains East Renfrewshire (£192,075), despite only seeing prices rise by 2% over the last 12 months. The most affordable local authority is East Ayrshire at £102,767."