Residential property prices in Scotland are now almost the same level as early 2007, according to the Scottish House Price Monitor from Lloyds TSB Scotland.

The bank’s Scottish home price monitor shows that the average price of a home in Scotland £152,565, which is similar to that recorded four-and-a-half years ago, in spite of weak consumer confidence.

The average price of a home in the country declined 3.7% in the three months to the end of July. But on an annual basis, values appreciated by 0.4%.

The Scottish property price recovery has been supported by a considerable rise in sales activity in recent months, with the volume of home purchases recorded in the second quarter increasing by 27% compared to the up on the preceding quarter.

But the number of homes purchased north of the boarder during the first half of the year fell 12% on the corresponding period last year, while the number of housing market transactions were still less than half pre-recession figures.

Donald MacRae, chief economist at Lloyds TSB Scotland, commented: “The Scottish housing market has adjusted to the recession with a halving of sales and a period of volatile price movement over the last three-and-a-half years. Average house prices in Scotland are now only marginally up on the levels of four-and-a-half years ago.

“The number of transactions increased from the depressed levels of winter but remained below the levels of one year ago. The Scottish housing market awaits a resurgence of both business and consumer confidence for a faster recovery.”

Ant Lyons (Editor, Your Property Network Magazine)