Scottish housing market shows low growth

The average cost of buying a house in Scotland has risen by almost 5% on the same period last year, a report said.

But the Scottish House Price Monitor from Lloyds TSB Scotland found prices fell in the last quarter - the three months ending in January 2011.

The average cost of a home north of the border is now £162,119.

However, the report said the number of homes bought in the last quarter was 26% down on the previous quarter, and 29% below the same quarter of 2010.

The most expensive property was in Edinburgh, making an average price of £257,354, while Dundee was at the bottom of the table at £139,251.

The survey found the house price average in Aberdeen was now 6.3% above its pre-recession peak.

In addition, the cost of buying a home in Glasgow has almost returned to its high of summer 2008.

Prices fell 0.3% in the three months to January but were up 4.7% compared with the same period last year.

Donald MacRae, chief economist at Lloyds TSB Scotland, said: "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 years.

He added: "The pattern of quarterly falls followed by quarterly increases to give virtually static house prices over the year looks likely to be repeated during 2011."