HOUSE prices have hit a record high, according to new official statistics.
The average price of a house in Scotland during the last three months was almost £168,000, the highest figure recorded for this time of year.
Figures released by Registers of Scotland (RoS) show a 3.5 per cent rise in prices in the period between April and June compared to the same period last year, taking the average value of a residential property to £167,765.
This is the highest figure registered for these three months since RoS began compiling quarterly statistics in 2003, and is another sign that the property market continues to pull away from the affects of the 2007 crash.
House sales are booming in Glasgow, where the number of homes changing hands grew by 17.6 per cent in the past 12 months, bringing the city above Edinburgh in terms of the volume of transactions.
Meanwhile, property prices in Scotland's largest city rose by more than 7 per cent, meaning the average home now costs £138,185.
The largest house price rise in Scotland was found in West Dunbartonshire, where the typical cost of a home rose by 10 per cent to £120,822.
Edinburgh recorded the biggest average house price at £237,286, a rise of 4.4 per cent on the previous year.
Kenny Crawford, commercial services director at RoS, said: "Across Scotland's local authority areas the picture is more mixed. The highest percentage rise was recorded in West Dunbartonshire, while the largest percentage fall in price was in East Renfrewshire, which showed a 7 per cent drop to £216,565."
Experts say that the property market is now absorbing the move from Stamp Duty to the SNP's Land and Business Transaction Tax (LBTT), which increased the up-front costs on expensive property but lowered them for the majority of homes.
Estate Agent Rettie and Co’s director of research Dr John Boyle, said: “These latest statistics show that the housing market in Scotland is modestly improving and accommodating the impact of the recent changes in property tax.
"Recent claims of hyper price inflation in the Scottish market seem wide of the market. The more rapid price growth at the start of the year was simply due to a greater proportion of higher value sales being brought to the market in advance of the new property tax being introduced in April.
"The picture is variable, however, and the market is sluggish in many areas. Transactions remain down on the year to date, showing that full recovery still has some way to go.”
The total value and volume of sales across Scotland was up compared to the previous year to more than £4.14 billion.
Flats showed the biggest increase in both average price and sales volume as prices rose, while detached and terraced properties both saw decreases in average price and volume.
The biggest fall in the number of sales was seen in Aberdeen at 18 per cent, where the financial turmoil within the oil industry is now affecting the property market.
Bob Fraser, senior property partner at Aberdein Considine, said the figures show prices across Scotland catching up with the north-east.
He said: “These stats give a very clear reflection of what we are seeing on the ground in Aberdeen and Aberdeenshire, which is a quieter top end of the market and a very busy mid to lower end,” he said.
“Average prices are up both in the city and shire compared to last year, but down on the last quarter.
“However, I don’t think this is anything to worry about. Across Scotland as a whole, the picture is positive. The north-east market led the recovery post-recession and what we are seeing now is the rest of Scotland catching up as the region adapts to lower oil prices.”
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