Scottish prices rise impressively

The Scottish housing market is booming, according to the latest figures.

Lloyds TSB Scotland says that house prices across the country increased by 3.6 per cent in the three months leading to October 31st.

Annual inflation was even more impressive, reaching 14.5 per cent in the month and taking the average house price to £168,559.

Aberdeen saw the greatest annual growth, recording a figure of 34 per cent, with the rest of the north, excluding the city, seeing growth of 22 per cent.

"There is no evidence of any crash in Scottish house prices. Rather, the Scottish housing market continues to show robust annual increases in excess of inflation," said Lloyds TSB chief economist professor Donald McRae.

"However, the slight decline in the quarter in Edinburgh prices may yet be replicated around Scotland when interest rate rises and increases in the cost of borrowing take full effect.

"The increase in Scottish house prices needs to slow. However, this will happen as a gentle slowing in price as opposed to an abrupt fall," he continued.

Recent figures from Your Move put monthly house price growth at 1.2 per cent in October.

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