DUNDEE WAS one of just two places in Scotland to record a rise in property prices over the last quarter—as the average house price in the country fell for the first time in seven years.

The latest Scottish House Price Monitor from Lloyds TSB Scotland shows that in the three months to January 31 the quarterly price index for the average domestic property in Scotland fell by 1.6% to £163, 211.

However, on an annual basis, Scottish house prices have risen by 14%.

The only two places to record a price rise were Dundee and Edinburgh, with quarterly rises of 1.5% and 0.9% respectively.

The average price of a house in Dundee is £154,599 compared to the national average of £163, 211.

Not all types of property are falling in value though. Flat prices have risen by 2.1% in Scotland over the past three months, while detached properties have fallen by 1.3%.

Terraced homes and semi-detached houses have also fallen by 3%.

Professor Donald MacRae, chief economist with LloydsTSB Scotland, said, “Though this is the first quarterly fall in the Scotland average house price for seven years, all cities and areas outside cities continue to show an annual underlying price increase.

“The market is showing sensible adjustment after years of price gains above the rise of inflation.”