Insurance News Archive

Scottish property market 'ahead of the rest of the UK'

The number of mortgage approvals in Scotland has fallen by 20 per cent in the first quarter of the year but the country's property market remains ahead of the rest in the UK, according to research.

A study by the Council of Mortgage Lenders (CML) found 16,000 loans were granted in the first three months of 2008 in Scotland.

This raised its share of house purchase loans in the UK to 11 per cent from eight per cent in the same period a year ago.

Kennedy Foster, policy consultant at CML Scotland, said the slowdown is expected to get worse before it gets better across the UK.

"However, to date, there has been less of an impact in Scotland than the rest of the UK as affordability is better here, meaning borrowers have been less affected by the tightening in lending criteria."

Mark Horden, a spokesman for the Glasgow Solicitors Property Centre, told the Sunday Herald the Scottish market is more stable and less exposed to downturn.

He said a period of price stability is likely in the country.

05 Jun 2008