Published on : Fri, 18 Nov 2005 22:16GMT
by : David Parker

The latest Lloyds TSB Scotland House Price Monitor shows that the booming housing market in Scotland could be heading for a quieter period as the average price of a domestic property in Scotland increased by only 0.8 percent in the three months to October.

"Although there are wide variations across Scotland, there is now clear evidence that the annual rate of increase in average prices is slowing to a level much more consistent with the average annual increase of earnings of 4 to 5 percent," said Professor Donald MacRae, chief economist at Lloyds TSB Scotland.

The average price of a home in Scotland was recorded to be £129,989. The bank said that although the average house prices have risen consistently for the last 9 quarters, the percentage of these increases was falling all the time. "The underlying economic environment remains benign. Unemployment remains at the lowest level for 30 years, accompanied by robust levels of increase of retail sales and continuing high levels of consumer confidence," explained Professor MacRae.

Meanwhile, the latest figures from the Registers of Scotland show that the average price of a home in Scotland increased by 2 percent to £117,626. The Lothian region continued to top the list of the highest average price with £153,669, while the Glasgow market continued to be the biggest with sales of homes totaling £1.2 billion.

This is an increase of £167.5 million as compared to what was recorded at the same time last year. The highest year-on-year increase in the average house prices was registered by the Highlands and Islands at £110,833. Prices in Edinburgh and Aberdeen continue to grow at more than average rates. Edinburgh recorded a 3.7 percent increase in the last three months, while Aberdeen properties have spiraled by 10 percent since August.