Housing market ‘past bottom’ in Scotland

The Scottish housing market is past its worst and is starting to improve, it has been suggested.

Such a view was suggested by Professor Donald MacRae, chief economist at Lloyds TSB Scotland.

The bank’s Scottish House Price Monitor has revealed that the second quarter of 2009 saw a price fall of 1.4 per cent, compared to a 4.3 per cent drop in the three months to March.

During the second quarter prices began to rise again in the cities of Dundee and Glasgow.

Professor McCrae remarked: “The worst of the housing market downturn has been experienced by falling transactions and an easing of prices but no precipitous collapse. The Scottish housing market is on the turn.”

The market may be helped by interest rates staying low over an extended period of time.

Such a prospect may be more likely after Bank of England governor Mervyn King predicted this week that inflation will stay below the government’s target rate of two per cent in the coming months.

Leave a Reply

Your email address will not be published. Required fields are marked *