In the three months ending October 2012, the quarterly price index for the average domestic property in Scotland fell by 5.8%.

According to the latest Scottish House Price Monitor from Lloyds TSB Scotland, on an annual, underlying basis, Scottish house prices have fallen by 0.3%.

The average Scottish house price is now £155,188. Scottish house prices are 90% of their peak at the beginning of 2008.

The latest house price movement has been generated from a market with a low number of transactions. Compared to the previous quarter, the number of transactions in the Monitor is down by 26% and by 11% when compared to the same quarter one year ago. Prices continue to show volatility as a result, Lloyds TSB said.

For the market as a whole, Scottish house purchases during the third quarter of 2012 showed a fall of 2.1% on the same quarter of last year. For the month of September, the number of transactions fell by 7.7% compared to the same month in 2011.

Donald MacRae, chief economist, Lloyds TSB Scotland, said: “The Scottish housing market had adjusted to the recession with a halving of sales and a period of price volatility. The previous Monitor results showed a pick-up in both activity and prices. However, that pick-up has been reversed in the latest quarter leaving average house prices at 90% of their pre-recession peak.

“Consumer confidence turned negative at the beginning of 2011 and remained negative for 18 months. The latest figure for quarter three this year shows a return to positive territory. However, consumer confidence still remains low and the rate of increase in consumer spending remains modest.

“The pick-up in activity and price of the summer has been reversed with the Scottish housing market expressing low levels of consumer confidence and a return to recession, There are no signs in this latest quarter of any robust recovery in the Scottish housing market but equally no indications of sustained, deep falls in price.”

Figures shown are for the year October 2011 to October 2012.