more scottish property news

Scots still have hottest properties

 © The Herald
Originally published: 21.07.2006

House prices in Scotland outstripped the UK average last year, offering further evidence that the property market continues to boom north of the border.

According to the Bank of Scotland house price index, house prices across Britain grew by 9.4% over the past 12 months. In Scotland, price rises averaged 14.5%.

Today's report also reveals Edinburgh has been toppled as Scotland's most expensive town or city for the first time in five years.

Dalkeith, in Midlothian, has an average price of £192,678, just above the capital's average of £190,703, and only three towns remain below the £100,000 mark: Kelty and Lochgelly, both in Fife, and Greenock in Inverclyde. Lochgelly, however, showed the biggest rise, of 36% from £69,000 to £94,000.

In Glasgow, prices went up by 7% to £142,000 and Aberdeen had a 24% rise to £153,000. Flats and maisonettes showed the biggest growth in prices in the past 10 years.

Prices in Scotland are still considerably below those in England, with London and the south-east the most expensive. However, four years ago London prices were three times higher than Scotland, now the gap has closed to 2.2.

Tim Crawford, Bank of Scotland group economist, said: "The housing market in Scotland is the strongest in Britain. However, current growth rates are well down on the 20% plus house price rises seen in 2004 and early 2005."

The report comes as the Council of Mortgage Lenders said borrowing had hit a record level for the second month in a row. The group said during June borrowing on property across the UK hit £32.2bn, up from £29.1bn.