Scottish house prices continue to fall

This latest fall is greater than the 2.3% fall in the previous quarter and provides evidence of the difficult start to the year in terms of both house prices and the number of house purchase transactions.

On an annual basis, Scottish house prices have now fallen by 2.1%. The volume of house purchase transactions is down 35% on levels recorded for the same period last year.

Within this figure purchases of flats have fallen by 39% while semi-detached sales are down by 28%.

The picture across the country remains very mixed with two areas still reporting a small annual rise compared with more significant annual falls elsewhere.

However, while house prices fell in each month of January, February and March, price rises were recorded in April. House price transaction numbers rose in both March and April.

Professor Donald MacRae, chief economist, Lloyds TSB Scotland, said: "The Scottish economy is now firmly in recession. Consumer confidence has fallen and claimant unemployment has risen. However, there is evidence of consumer confidence marginally improving while retail sales continue to increase on an annual basis."

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