News: Dundee soars in Scotland

Tue, 06 Nov 07

Dundee is Scotland's best performing city over the past five years...

With city living a popular lifestyle choice and intense competition amongst towns to be awarded city status, new research by Bank of Scotland has investigated the movement of house prices in the 66 official cities in the UK.

Dundee has recorded the biggest increase in house prices in Scotland over the past five years, with a rise of 130%. It is closely followed by Aberdeen, which has seen house prices rise by 125% over the same period.

Urban regeneration

Inverness has been the best performing "millennium" city in the UK - those towns granted city status in 2000. House prices in Inverness have increased by 192% to £172,691 in the seven years since September 2000. The UK average house price has increased by 140% over the period.

Martin Ellis, chief economist at Bank of Scotland, commented: "House prices in cities tend to be higher than the average price in their region. The attraction of shopping and leisure facilities, as well as a short commute for workers means that there will always be demand to live in cities.

"Many cities have also benefited from urban regeneration programmes that have seen the wide scale re-development of old industrial areas and canal side warehouses into residential properties. The strong performance of Dundee and Aberdeen highlights the fact that homebuyers are looking for attractive places to live in which also offer good transport links, easy commuting and convenient shopping."

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