The latest quarterly Scottish House Price Monitor from Lloyds TSB has revealed that Scottish house prices are now almost identical to their level four years ago.
While annual house prices increased in Scotland by 2.4 per cent in the last year, a sharp fall of 3.6 per cent in the three months ending April 2011 reversed earlier gains.
According to the Lloyds TSB House Price Monitor, this large price movement has been generated by a low amount of sales in the market.
The number of house purchases recorded in this quarter's Monitor was 6 per cent down on the last quarter and 18 per cent below the same quarter of last year.
Donald MacRae, chief economist, Lloyds TSB Scotland, said: "The Scottish housing market has adjusted to the recession with a halving of sales and a period of volatile price movement over the last three and a quarter years.”
“The slow recovery from recession is being expressed in the housing market, principally through low levels of sales and a return to the prices of four years ago."