Tuesday, February 26, 2008

Scotland’s runaway property boom is over, with house prices falling for the first time in seven years.

Scot property market 'stopping to get breath'

The average price of a house in Scotland has fallen by £411 a week - or nearly £60 a day - in the last three months, according to a report by Lloyds TSB. But despite the quarterly fall, all areas of the country are still showing healthy annual price increases of up to 30 per cent, with Aberdeen remaining Scotland's top property hot spot.The latest Lloyds TSB Scotland Scottish House Price Monitor said there is no cause for panic despite the boom in prices coming to an end. The bank said that property prices in Scotland will "plateau" with the country avoiding a damaging boom-bust scenario.

Posted by jack c @ 07:53 AM (762 views)
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5 thoughts on “Scotland’s runaway property boom is over, with house prices falling for the first time in seven years.

  • Err, if it falls £60 a day how can it increase by 30%, I mean I am only an engineer but surely the prediction will be a continued fall not plateau?

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  • Perhaps the 30% relates to a much longer period?

    Still, I would like to see more headlines like these.

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  • If prices are falling, then how can Scotland avoid a boom-bust scenario? Prices rising at 30% per annum is not accurate either. The Scottish average was about 12% and that was largely skewed by the oil-driven housing boom in Aberdeen where prices rose by 27%. The “soft landing” scenario is just not realistic – Ireland and the USA were touting for a soft landing a year and two years ago respectively and they’re now admitting that price falls of 20% are realistic and happening. Scotland will go the same way, especially Edinburgh where prices are purely driven by speculation.

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  • The Mad Rapper says:

    Of course the market will show an annual increase, the crash has only really started to bite this year. I am sure the annual figures next year will tell a very different story!

    Commentators really need to get a grasp of the economic situation; the banks have no money, the days of cheap mortgages, high LTVs and cheap credit are well and truly over, customers are heavily indebted and inflation is robbing them of what little disposable income they did have. Who exactly is going to be funding this ‘plateau’?

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  • Aberdeen is in $100 a barrel la la land, the rest of the Scotland turned in September last year like everywhere else in the country.

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