The growth of the Scottish housing market has stagnated, according to the latest findings from Lloyds TSB.

Research by the institution has found that in the three months to July 31st 2010, the price of the average domestic property in the country fell by 2.9 per cent compared with the previous quarter.

While the number of transactions taking place in Scotland rose by 19 per cent by June 2010 compared with the previous year, the overall total is still half of what was taking place prior to the recession.

Professor Donald MacRae, chief economist with Lloyds Banking Group in Scotland, said: "It is clear that recovery from recession in the Scottish housing market has paused."

Although the recovery of the market in Scotland has stopped, first-time buyers across the country are currently enjoying the lowest repayment costs on their mortgage in 25 years, costing just 28 per cent of the average disposable income.

Written by Fiona Mayers

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