Residential property prices in Scotland began to fall towards the end of 2011, a survey by e.surv has revealed, as values declined for the second month in a row. The average house price decline slowed to 0.8 per cent in November, compared with 1.4 per cent the previous month, while the price of flats fell by 2.2 per cent.
“Although prices were pretty much flat in 2011, they’ve shown tremendous resilience given the bleak economic backdrop,” Richard Sexton, director of e.surv, told Property Wire. “The upshot of flat prices is that high inflation is slowly making property more affordable.”
However, conditions will still be difficult for property buyers taking their first steps onto the ladder, who still need to build up large deposits before they can secure a mortgage. The economic downturn in Europe will also drive down the amount banks are willing to lend to riskier customers, making the situation even tougher.
“First time buyers will still enjoy a stamp duty holiday until April, but after that their numbers could decline sharply,” added Mr Sexton.
