House Prices Fall in Scotland for Third Month as Economy Slows

House prices in Scotland fell for a third consecutive month in December as the economy slowed, according to a survey by LSL Property Services Plc. (LSL)

House values have declined 2 percent since April 2010 and fell 0.2 percent on average in December to 146,913 pounds ($230,000), LSL Property, owner of realtors Your Move, said in a statement today. December prices declined an average of 1 percent compared with the same month in 2010. The number of transactions rose 2.5 percent in December from November.

“Buyers are understandably unsure which direction the economy will take, which will encourage more of them to sit tight during 2012,” Gordon Fowlis, regional managing director of Your Move, said in the statement. “The banks are terrified by the prospect of a further downturn in the euro zone, which will feed through into the mortgage market.”

The U.K.’s gross domestic product shrank 0.2 percent in the fourth quarter, leaving the economy on the brink of a recession, as inflation, rising unemployment and the euro-area debt crisis damped consumer spending. LSL is the country’s second-largest realtor with about 570 outlets, according to the company. Countrywide Plc is the country’s largest mortgage and real- estate broker.

To contact the reporter on this story: Tim Farrand in Edinburgh at tfarrand@bloomberg.net

To contact the editor responsible for this story: Colin Keatinge at ckeatinge@bloomberg.net

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