House prices rise and sales grow as Scotland's house market enters "robust" phase

House prices are also on the up, having grown by 1.6 per cent during the year - with some areas recording double-digit increases in property values .

RoS’ commercial services director, Kenny Crawford, said that Scotland was now enjoying a "robust" property market, with prices at their highest for more than a decade.

He said: “As well as a significant increase in the volume of sales this quarter, prices have reached their highest since RoS began compiling quarterly statistics in 2003. This increase is more modest, up 1.6 per cent to £167,734. Combined, this indicates a more robust and active property market.”

Almost 30,000 properties were submitted for registration between October and December, with the City of Edinburgh Scotland’s top property hotspot where estate agents completed 3,532 sales, up 21.4 per cent from the year before.

The capital also held the highest average price at £233,255, a rise of 3.2 per cent on the previous year, while the house prices in Glasgow rose by 8.6 per cent to £140,837.

The highest percentage price rise was in Inverclyde where property values climbed 13.1 per cent to an average of £132,382.

However, the largest percentage fall was in Dumfries and Galloway, which showed a drop of 9.9 per cent to an average price of £130,275, while the gloom affecting the oil and gas industry in the north east was reflected by a fall in sales and house prices in Aberdeen.

RoS said that house sales had fallen by 12 per cent in the Granite City, while the value of an average home dropped by almost 2 per cent.

The total value of sales across Scotland registered between October and December increased by 16.3 per cent to just under £4.83 billion.

These RoS stats covered all residential sales, including those that did not involve a mortgage.

Bob Fraser, senior property partner at Aberdein Considine, one of Scotland’s largest solicitor estate agents, said the figures are the best snapshot of the market to date.

He said: “The third quarter is usually the busiest and therefore accurately reflects the property market.

“The increase in activity is very encouraging and shows the continued recovery in the general Scottish market. Edinburgh continues to improve while areas such as East Ayrshire show a dramatic increase in values indicating a wider geographic spread in activity.

“Particularly heartening is the strength of the flat market which in turn traditionally drives the upper market.

““The Aberdeen and Aberdeenshire figures reflect the downturn in the energy sector, but it should be remembered that these figures follow on from the recent property boom and although there has been a decline in terms of these historic values and volumes, the figures still show a relatively strong market.”

Michelle Grant, investment director at Grant Property, added: “Today’s figures are a real indication of the buoyancy of the property market. From a buy-to-let perspective we have seen an increase in demand for investment properties in Scotland over the last three months.

“Prime areas in Edinburgh have proved particularly popular with most properties selling for more than the Home Report valuation. In the last two weeks we have been competing against 20 plus buyers for prime location properties with some buyers bidding up to 20% above valuation just to secure the property."

Rettie and Co’s Director of Research, Dr. John Boyle, said:

“These latest statistics show that the housing market in Scotland improved fairly solidly over 2015 as a whole, continuing the growth seen from mid-2013 due to improving economic activity levels, consumer sentiment, bank lending and new build activity.

"First time buyers have also returned to the market in larger numbers, which has been a major factor behind getting the market moving at all levels.

"Although demand pressures are seeing house prices rise, prices in Scotland remain down on 2007 levels in real terms. Transaction levels are also still under the 2007 peak.”