Falling house prices hit hopes of recovery

POOR consumer confidence has dashed hopes of a recovery in the depressed Scottish housing market, the latest survey shows today. Average house prices fell by 3.7 per cent across the country between May and July compared with a year ago, Lloyds TSB Scotland said.

Its quarterly Scottish House Price Monitor also showed sales in the first half of this year were down by 12 per cent compared with 2010, including by 17 per cent in June. The banking group warned consumer confidence remained low and there had been only a “muted” impact from the annual spring sales boost.

In a separate measure of consumer optimism for the next year, based on a series of questions, the index remained in the red, at -2 compared with +6 a year ago.

The report comes just weeks after a Registers of Scotland survey showed house sales slumped