House prices fall by up to 20% as market thrown into reverse

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House prices across Scotland are falling but Fife seems to be less affected than other areas.

Scottish house prices plunged in the first three months of this year, as the modest increases of 2010 were wiped out.

The number of property sales also dived in the three months to the end of March, according to new Registers of Scotland (Ros) data. There were 35 per cent fewer sales in the first three months of 2011 than in the final three months of 2010.

However, Fife saw a 0.7% increase, with the average cost of a home being £134,070.

The average cost of a home in Scotland fell 1.1 per cent to £146,253 in the first quarter, compared with the same period last year. Prices were also 7.7 per cent down on the final quarter of 2010 as wintry conditions saw activity grind to a halt.

Edinburgh continues to be the most expensive place to buy a home in Scotland, although the average price in the capital fell to £203,278, 4.1 per cent down from £216,331 at the end of last year.

East Lothian recorded the largest fall in price with a drop of almost 10 per cent from £196,718 to £177,411.