Scottish house prices continue to rise

House prices in Scotland continued to rise in the last quarter, perhaps suggesting that more people will be forced to rent in the future.

Data released by Lloyds TSB shows that the cost of the typical domestic property in Scotland rose by 1.7 per cent in the three months to the end of July.

This means that the average cost of a home in Scotland is now £162,779 and that house prices have increased by 13.2 per cent in the last year. Despite the rise, houses in Scotland remain cheaper than those in the rest of the UK, potentially making them attractive to landlords.

Some areas of the country have experienced particularly sharp rises in house prices this year, suggesting that these could be lucrative places for landlords to think about investing in.

For example, prices in Aberdeen have risen by 32 per cent since this time last year. As more people struggle to afford their own home in the city, they could be forced to rent.

"Although there is wide variation inprice changes across Scotland, there is clear evidence that the Scottish house price boom is coming to an end," warned professor Donald MacRae, chief economist at Lloyds TSB Scotland.

"The rate of increase of house prices in Scotland has slowed significantly but a fall in house prices remains unlikely. The Scottish housing market may be down but it is certainly not out."

Figures released by the Department for Communities and Local Government showed that the average house in the whole of the UK now costs £214,222.