House Prices In Scotland Unlikely To Rise

House prices in Scotland are unlikely to rise in the short term, though they may do so in the long run, according to one industry expert.

Dianne Paterson, property partner at Russel + Aitken, made the prediction after a new report by the Bank of Scotland showed the cost of owning and running a home in Scotland has risen to its highest level since 2008, in spite of the historically low interest rate.

She commented that it may initially seem "surprising" that there has been a significant drop in mortgage payments in the last three years, but this has been "largely offset" by increases in other household bills. Inflation rates at their full sway has hurdled smooth running of households and saving up for future seems a tough task.

The Bank of Scotland figures showed that, in the past 12 months, the average annual cost associated with owning and running a house rose by 1.4 per cent (116) from 8,525 to 8,641. However, housing costs in March this year are still some 1.8 per cent lower than the average annual total in March 2008.

Commenting on the overall market, Ms Paterson said it is "unlikely" that average house prices will rise in the short term.

However, for certain types of property in sought-after areas, demand is already beginning to outweigh supply and this will lead to longer-term price increases.

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