Property: Hope for housing market as sales rise by 11%

THE number of homes in Scotland sold in the first five months of the year has increased by 11 per cent, showing signs of recovery in the housing market, according to a new report.

THE number of homes in Scotland sold in the first five months of the year has increased by 11 per cent, showing signs of recovery in the housing market, according to a new report.

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The average cost of a house in Scotland stood at £146,073 in May, down almost £200 on the previous month’s figure.

Experts said the housing market was faring well under a “stuttering” economy, with an increase in sales hinting towards a more sustained recovery.

However, they issued a note of caution over the future availability of mortgages, saying lending to buyers with small deposits has been suppressed.

The findings in the latest

LSL/Acad Scotland house price index revealed that despite prices being flat, they are higher than at the beginning of 2012. Figures show the price of a house in Scotland was down 0.1 per cent in May from April’s figure of £146,268, and down 0.6 per cent from the same time last year.

The study revealed the number of transactions carried out in January to May this year was up 11 per cent compared to the same five months last year, although the figure was still significantly reduced from early 2007

levels.

The increase in the number of house sales from April to May was 7 per cent, with the main increase seen in semi-detached and terraced properties.

Regional variations in house prices across Scotland’s 32 local authorities were also recorded in the report.

Excluding the three island groups of Shetland, Orkney and the Western Isles, some of the biggest house price rises since May last year were found in Dumfries and Galloway and Midlothian.

Edinburgh and Dundee also saw prices rise, with the average cost of a home in the capital now £217,803 and £128,375 in Dundee.