THE property market in Aberdeen is leading the recovery in the country's residential market, with new figures showing sales and prices are on the up.

Prices are now 25 per cent above the ten-year average in Aberdeen city, while Aberdeenshire has also enjoyed a boom as a result of a growing market driven by North Sea oil workers, according to estate agents Savills.

Faisal Choudhry, Savills head of research in Scotland, said there was a lack of prime stock to meet demand in the city, but prices were remaining strong, with a rise in buyer interest since the referendum.

He said: "There has been strong evidence of a steady recovery in Scotland's residential market, with Aberdeenshire leading the way."

Fiona Gormley, head of residential at Savills in Aberdeen, said the introduction of the new Land and Buildings Transaction tax, which is due to replace stamp duty, may impact on the market. When the new rules come into force in April, people buying a home worth more than £325,000 will have to pay higher fees than now.

She said: "House price growth here is expected to exceed the Scottish average over the next five years. However, Aberdeen's position as a global energy hub, the current imbalance between supply and demand, and the impact of the new LBTT tax on prime property will determine the market in the medium term.

"We are anticipating a busy first quarter in 2015 for the housing market in Aberdeen and beyond."