LSL Property Services/Acadametrics has reported that property prices have fallen by 2.7% in Scotland in the 12 months to August 2012 and that they fell fastest in August, down 1.2% compared to July.

However, Richard Sexton, director of e.surv chartered surveyors, part of LSL, comments: “The headline figures suggest the housing market is slipping back into the deep hole it found itself in during 2009, but it isn’t time to start ringing the alarm bells just yet. There were ‘freak’ factors in play over the summer which affected August prices: various summer events and the torrent of rainfall.

“The market hasn’t suddenly become a lot weaker. First time buyer numbers are up 9% so far on last year, demand is still strong, and high loan-to-value mortgages are more widely available. August should prove to be just a blot on the copy book of recovery.

“Things were more varied on a regional basis. Prices in Edinburgh continue to ‘rollick along’, thanks mainly to the greater number of wealthier buyers who live in the capital. In less affluent areas, fewer buyers have been able to meet mortgage finance requirements, which has reduced sales levels and dragged down prices as a result.”