Average house price reaches £140,000

Reluctant Hero · Average house price reaches £140,000

http://news.bbc.co.uk/1/hi/scotland/6909512.stm

Houses hit £140,000 average price

The average cost of a home in Scotland has crossed the £140,000 mark, according to new figures.
Despite recent rises, house prices are now slowing as interest rate increases take effect, according to the Bank of Scotland quarterly house price index.

The survey puts the average price of a house in Scotland at £140,262, below the UK average of £196,525.

Edinburgh remains the most expensive place to buy a home, with average costs sitting at £222,441.

The biggest annual increase in prices was seen at Leven in Fife, up 33% to £141,853, and Inverurie in Aberdeenshire, up 32% to £207,540.

The quarterly rise for Scotland, at 0.6%, was one of the smallest in the UK, said the bank.

It said the average was set to increase by 10% in 2007, more than the expected UK average increase of 6%.

The group also said Scotland's relative affordability should see it remain one of the best performers in the UK property market in the near term.

'Cooling is anticipated'

Group economist Tim Crawford said: "Over the past year Scotland has seen the strongest house price growth in Britain, an increase of almost 16%.

"Despite recent price increases, Scotland is still the most affordable part of the UK by a wide margin.

"The average house price in Scotland, at £140,262, is almost 29% below the UK average."

Mr Crawford said he expected the Scottish housing market to slow over the rest of 2007 as recent interest rate rises and affordability constraint made buyers more cautious.

He added: "Prices have risen more than earnings in Scotland in recent years, so a cooling is anticipated.

"Over 2007 we expected Scottish house prices to increase by 10%, down from 12.5% growth in 2006."