Lloyds TSB house price survey shows Scotland in good shape

House prices in Scotland's four major cities have started to rise again after a slowdown towards the end of last year.

According to the latest Lloyds TSB Scotland House Price Monitor, Glasgow demonstrated the biggest increase with a quarterly rise of 10.7 per cent.

This was followed by Edinburgh with a jump of seven per cent, Dundee with 5.6 per cent and Aberdeen on 3.2 per cent.

Over the full year to the end of January 2005, Glasgow once again experienced the strongest growth in prices (22 per cent), followed by Edinburgh (16 per cent), Dundee (12 per cent) and Aberdeen (10 per cent).

It is the 16th consecutive quarterly rise in Scotland with the average house now costing £116,149.

Professor Donald MacRae, chief economist at Lloyds TSB Scotland, explained that the forecast for the Scottish housing market also remained strong.

He commented: "A benign economic environment coupled with low unemployment and demand for houses exceeding the supply, will keep house prices rising in Scotland in 2005, albeit at a lower rate than 2004."