A FLURRY of property statistics this week provide stark evidence of

the north-south divide -- a continuing downward slide in the South and

static prices in Scotland.

The Nationwide Building Society's monthly house price index shows a

fall of 2.7% across the UK in October compared with the previous month.

The Halifax Building Society's statistics for October showed a better

picture. Prices had dropped by 1.2% on their index and average prices

are 8.7% lower than 12 months ago.

Seasonally adjusted, the Halifax's index shows an average drop in

house values of 1% per month. Tim Melville-Ross, Nationwide's chief

executive, said that the end of the stamp duty holiday and interest rate

volatility over withdrawal from the ERM created ''uncertainty'' that

continued on into October.

''However, several positive features are now beginning to emerge for

the housing market,'' he said. ''For example, mortgage interest rates

are now at their lowest level for almost 15 years, houses are now on

average more affordable than at any time since 1971, and in many areas

of the country monthly mortgage payments are lower than rents.''

The average cost of a UK house is now #53,038 which is a drop of #1491

on September. House prices in October were 6.6% lower than in the same

month last year. Meanwhile, housing starts across the UK fell by 7% in

July-September compared with last year.

By contrast, Scotland has not been nearly as hard hit as the South.

But the Scottish property market is being held back by ''a resounding

lack of confidence'', say the Royal Institution of Chartered Surveyors

in Scotland (RICS).

The main problem facing the industry in Scotland is that prospective

buyers are worried about their job security. ''Even the recent interest

cuts do not appear to have spurred the public into thinking of moving

house,'' says the RICS quarterly market report.

Many parts of Scotland report static prices and properties are taking

longer to sell. ''Most people are choosing to play it cautiously by

selling an existing property before putting in an offer for a new one,''

says the report.

Surveyors in Scotland are reinforcing the regular refrain of this

column -- that properties have to be marketed at realistic prices to

achieve a sale. ''Property owners are urged to realise that a house is

foremost a place to live and only secondly does it have investment

potential,'' say the surveyors.

The good news is that Scotland does not appear to be suffering

mortgage repossessions at anything like the rate in England. The down

side is that no upturn in the Scottish market is predicted by the RICS

before spring 1993 at the earliest.

In compiling regional results, surveyors produced sample valuation

prices for starter homes (1-3 apartment flats) and urban family homes

(4-6 apartments).

* Glasgow and Strathclyde: Prices are mainly static, but small starter

flats are selling well. Robert Stein of surveyors Walker Fraser & Steele

said: ''The prevailing lack of confidence does not appear to have been

helped by interest rate cuts and will only be overcome when jobs are

felt to be secure.'' Starter homes, #37,500. Urban family homes,

#80,000.

* Edinburgh and the Lothians: The supply of properties for sale

exceeds demand and prices realised at the higher end of the market have

dropped. Duncan McDougall of Ryden Residential said: ''There's a general

lack of confidence, but if sellers were prepared to lower their

expectations more sales would take place.'' Starter homes, #34,000.

Urban family homes, #95,000.

* Dumfries and Galloway: Prices holding up ''reasonably well'' but

houses are taking longer to sell. Unusual rural properties, such as

those with fishings, continue to attract interest. Starter homes,

#31,000. Semi-detached family homes, #55,000.

* Inverness and Highland: The only active sector is the first-time

buyers' market. Purchasers are keen to sell before they buy. Prices are

stable. Starter homes, #33,000. Urban family homes, #66,000.

* Aberdeen: Lack of competition for houses is resulting in lower

prices. More properties are being offered at a fixed price. Local agents

believe that the Aberdeen market is still better than the rest of

Scotland. Starter homes, #35,000. Urban family homes, #85,000.

* Dundee and Tayside: Prices are static. Middle-range properties are

performing ''reasonably well''. Starter homes, #33,000. Urban family

homes, #70,000.

* Fife: Asking prices for houses over #100,000 are often reduced to

achieve a sale. More houses are coming on to the market, but there is a

lack of competition for them. Starter homes, #35,000. Urban family

homes, #65,000.

* Borders: Rural family homes are selling reasonably well, but large

former farm houses are proving hard to dispose of. Prices at the upper

end of the market have fallen back. Starter homes, #20,000. Family

homes, #70,000.

Woolwich urges tax breaks

IN a bid to get the market moving again the Woolwich Building Society

is proposing short-term tax breaks for people who move house. Chief

executive Donald Kirkham has suggested that the tax relief limit of

#30,000 should be doubled to #60,000 -- but only for people who move

house within a limited period of time.

He also recommends that the stamp duty threshold be doubled to

#60,000. The Woolwich has also launched a scheme to allow the 1.5

million people whose mortgage debt exceeds the value of their home

(known as negative equity) to move house.

The society will permit a buyer to transfer the existing mortgage,

including negative equity, from their current home into a new property

of the same, or less, value.

Home in the Highlands

AGENTS Savills are marketing Wester Lix (above and right), a property

which they describe as a ''Highland gentleman's home''. Situated near

Killin, Perthshire, Wester Lix might be of particular interest to any

gentle-folk called Macdonald: the property is currently owned by Ranald

Macdonald, the Captain of Clanranald.

He claims that the drawing room is big enough to accommodate two

sixteensome reels. The property comprises drawing room, dining room,

kitchen, study, WC, utility room, wine room, two bedrooms and bathroom.

It comes with an adjacent cottage which has large studio, dining room,

kitchen, four bedrooms, and two bathrooms.

There are about nine acres of ground with a lochan and waterfall.

Savills are seeking offers over #150,000.

* CALA Homes have opened their newest development, Stablewynd at

Alnwickhill, Edinburgh. The site used to be part of the Mortonhall

Estate and was used as grazing land until recently by Tower Farm riding

stable. (Picture above shows entrance.)

Cala will build 22 three, four and five-bedroom detached houses of 11

different designs at Stablewynd. Prices will start at #155,000.

* PERTH estate agents Bidwells are marketing an unusual opportunity to

rent a castle with strong historical connections. The first-floor flat

in Methven Castle (right) is available for an initial six-month lease at

a rent of #500 to #700 per month.

The property is available while its owners travel to Pakistan to carry

out voluntary work for the Scottish Churches World Exchange. Architect

Ken Murdoch paid #5000 for the castle as a ruin in 1984. He has since

turned the two-bedroom flat into a cosy well-equipped home. The ground

floor has been turned into a classical concert hall.

Methven Castle claims connections with the Wars of Independence when

Robert the Bruce confiscated the stronghold from Robert de Mowbray after

the English defeat at Bannockburn.

Over the centuries several kings and queens have lived in the castle.

James II and his queen took up residence around 1450, James IV was a

visitor in the late fifteenth century, and Queen Margaret died in the

castle in 1542.