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Last Updated: Monday, 10 September 2007, 14:42 GMT 15:42 UK
House prices soaring in Highlands
Inverness
Property prices rose by up to £48,000 between 2004 and 2006
Property prices in the Highlands have increased more steeply than the rest of Scotland, according to new research.

People trying to get on the property ladder and those starting families are among the groups struggling with the higher costs.

Property prices rose by up to £48,000 between 2004 and 2006.

The research carried out by Highland Council also found that about half the homes sold for £250,000 and over were bought from outwith the region.

The authority used data supplied by Communities Scotland and the University of Paisley.

Council officials calculated the median price of all open market sales in Highland from 1990-2006.

Median is the mid-point price, meaning an equal number of homes were sold for more or less than this figure. It filters out the very high priced sales.

HOUSE PRICES
3,921 previously owned properties were sold on the open market in the Highlands in 2006, compared to 2,874 in 2004
666 new built properties were sold in 2006
The lowest prices for previously owned were in Wick (£65,000) and the highest in the Black Isle (£185,000)
80% of buyers of second-hand homes under £100,000 were from within the Highlands
Separate research by the council found 60% of buyers from outside the region bought on Skye

Prices rose gently during the 1990s, but rose steeply between 2004-2006.

For Highland as a whole the median price for a previously owned house by 2006 was £136,000 - an increase of £33,000.

The Scottish figure was £114,000, a £24,000 increase.

Meanwhile, the cost of new built properties in Highland rose by £48,000 and £26,000 for the rest of Scotland.

The introduction to the council's new briefing note said: "House prices in Highland have risen steeply since the millennium, making it increasingly difficult for people to enter into the property market and to buy larger homes as they have children."

Drew Hendry, chairman of planning, environment and development, said it was "very satisfying" to see the numbers of people coming into the area.

However, he said the provision of affordable housing was a priority.

He said: "We are committed to working with our housing agency partners to deliver 500 new affordable homes throughout the Highlands this year including up to 200 new low cost home ownership homes to ensure that local people are able to buy their own homes at affordable levels.

"The administration is also committed to ensure that there is sufficient land supply for 6,000 new homes over the next five years and to work with the private sector to enable these houses to be built."


SEE ALSO
Places dubbed low cost but classy
03 Sep 07 |  Tayside and Central

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