House prices rise by five per cent as sales take a sharp dip

Typical house values in Shetland have recorded a five per cent increase this spring compared with the same period last year, although residential sales are down.

Figures released from the Registers of Scotland show a typical property could have sold for £108,920 from April to June. The same property selling in the second quarter of 2008 would have gone for under £104,000.

The volume of residential sales, however, dropped from 82 in April to June 2008 to 61 this year, a decrease of 25 per cent.

Shetland was one of only four areas to have shown increases in average property prices, in what proved to be a downcast year for most other parts of Scotland.

The total value of sales across the country during April to June dropped by over 51 per cent compared with the equivalent time frame last year.

Orkney, Clackmannanshire and South Ayrshire were the only other areas to register increases. The greatest year-on-year decrease was Falkirk at 13.7 per cent.