An upturn in business and consumer confidence is needed to kick-start Scotland’s property sector, according to a leading economist.
New data produced by Lloyds TSB Scotland’s House Price Monitor shows house prices across Scotland rose 1.7% in the three months to the end of October. However, they had remained 2.9% lower than they were 12 months ago.
In Dundee the average purchase price dropped to £138,440 6.4% lower than at the same point last year.
The Central, Fife and Perthshire market saw a 3.4% fall over the same period, with the average price coming in at £146,258.
Further evidence of difficulties in the sector came with confirmation of a 5% reduction in the overall number of home transactions completed in September compared to the same month last year.
Lloyds TSB Scotland chief economist Donald MacRae said: ”The Scottish housing market has adjusted to the recession with a halving of sales and a period of volatile price movement.
”Average house prices are now 90% of their peak of three-and-a-quarter years ago.
”Consumer confidence remains low due to high levels of retail price inflation in excess of increases in earnings squeezing disposable income.
”The Scottish housing market did recover from the depressed levels at the beginning of the year but the overall number of sales remains at less than half of pre-recession levels,” he said.
”A faster recovery awaits a resurgence of both business and consumer confidence.”