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16/04/2014

House Prices Continue To Increase

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House prices have increased for the sixth consecutive month, according to latest figures.

It brings the cost of an average home to more than £160,000.

The figures, released as part of LSL's House Price Index for February, found that the average house price in Scotland rose by 3.6% in the last year, with first-time buyers being a catalyst behind the trend.

However, the increase in first-time buyers is said to be because they are reliant on government-assisted schemes, such as the Help to Buy scheme.

Geographically, out of Scotland's seven cities, Aberdeen had the largest annual growth of almost 12%, while at a local authority level, Inverclyde had the largest yearly increase in prices at 16.1%, the report from LSL Property Services and Acadata said.

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The largest rise in property sales was also found in Inverclyde, with terraced and semi-detached homes proving to be the most popular.

Elsewhere, homes in the capital are the most expensive, with the average property now standing at £229,253. Prices did fall by 0.8% last month, but the report added that Edinburgh prices increased by 3% over the year. Aberdeen was the second most expensive area for buying a property (£211,489), with Stirling third (£192,143).

Gordon Fowlis, from Your Move estate agencies, part of LSL, commented: "Help to Buy has been the spark driving the engine of recovery for the Scottish housing market.

"In a sign of the widespread revival, all seven Scottish cities have also seen price rises from last year.

"This urban renaissance is being driven by first-time buyers benefiting from Help to Buy, typically taking the plunge in vibrant cities.

"The debate is sure to ramp up in intensity as we edge ever closer to September and all eyes are on (Bank of England governor) Mark Carney's next move for housing.

"But for now Scotland can simply revel in a revived property market."

(JP/MH)

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