House prices on the Isle of Man rose by 0.5% in Q3 2008, the smallest average rise since 2006 Quarter 1, data from Bank of Scotland International has said.

The modest rise in prices compares to the UK average decline of 5.2%, with annual house price inflation now standing at -1.5%, much less than the UK average of -12.4%.

The average price of a house on the Isle of Man is currently £262,616, 50% above the UK average of £175,143.

Commenting, Martin Ellis, chief economist at HBOS, said: “House prices rose by 0.5% over the last quarter, the smallest average rise since the first quarter of 2006. The average house price on the Isle of Man now stands at £262,616, 50% above the UK average of £175,143. The premium paid for property on the Isle of Man compared with that on the mainland is widening.”