BRITAIN'S house prices have suffered their first annual drop for 12 years as the market continues to be hit by the fallout from the credit crunch, according to Britain's biggest building society.
The average cost of a home dropped for the sixth month in a row during April, according to the Nationwide Building Society.
Although its figures include sales in Scotland, it is understood the majority of falling prices are in England. North of t
he Border, average prices continue to grow or hold their level.
Yesterday's figures are the first negative annual results since March 1996, leaving property values 1 per cent lower than they were a year ago.
Although there have been warnings that Scotland could follow England into house-price dips by the end of the year, others are more optimistic.
Steve Spence, senior partner at Neilsons Solicitors, part of the ELPG property group in Edinburgh, said Scotland was bucking the trend partly because transactions here are insulated from each other.
"We don't have the 'subject to contract' chains which develop in England. In addition, in Scotland we do not have the regular peaks and troughs experienced in the English market," he said.
"While the market here may take a breather, we believe there's every reason to assume that Scotland will escape unscathed and continue to enjoy a robust market."
The full article contains 232 words and appears in The Scotsman newspaper.
