Overall, residential property prices in Scotland fell in the second quarter of 2009, according to the latest figures from Lloyd TSB Scotland’s latest Scottish House Price Monitor.

In the three months to the end of July 2009, the quarterly price index for the average domestic property in Scotland fell by -1.4%, but this was substantially less than the -4.3% fall in the previous quarter. This means that the average Scottish house price fell from £154,727 to £152,561. On an annual basis they have now fallen by -6.2%.

The index also showed that the number of transactions is down -38% on the levels recorded for the same period last year. The number of transactions reached its lowest point in May 2009 but has since begun increasing with the number of transactions in July some +35% higher than in May.

Indeed, average house prices have increased in both June and July providing further signs of a slight recovery in the Scottish housing market, the report said. While all parts of the country are now reporting an annual price fall, ranging from -0.5% to 15.8%, both Glasgow and Dundee have reported price rises in the latest quarter.