According to the Lloyds TSB’s Scottish House Price Monitor, in the three months to July 2007, property prices in Glasgow and Edinburgh dropped by 1.2% and 1.4% respectively, compared with the previous quarter.

There was a 10% fall in prices in South East Scotland (excluding Edinburgh) and a 2.5% drop in the South West (excluding Glasgow). The slowdown is being blamed on interest rate rises and increases in the cost of borrowing.
However, some parts of the country continue to show strong growth. Dundee had a strong quarter with a 9.2% rise and the cost of properties in the North of Scotland also increased (13.1%) as did those in Edinburgh (2.8%) and in the Central/Fife/Perth/Tayside region (10.1%).