STRONG property sales in Edinburgh and the north-east have fuelled a 1.1% rise in the average Scottish house price, with only London and south-east England performing better.
Figures published by the Office for National Statistics (ONS) revealed that in the 12 months to February this year, Scotland had outstripped every other nation in the UK with a 1.1% average increase in house price – pushing the cost of a typical home to £177,354.
The growth was almost four times the UK average of 0.3% and higher than the 0.4% average increase in England.
The monthly House Price Index report also revealed that in Wales the average cost of buying a home was down 0.5%, while in Northern Ireland the market was hammered by a 9.7% fall.
Only London and south-east England saw stronger rises than Scotland, with the cost of a typical property in the capital up 1.7%, or 1.2% in the south-east.
However, one estate agent north of the Border urged a note of caution, suggesting the average picture was "skewed" by the buoyant housing markets of Edinburgh and Aberdeen.
Bill Cullens, chief executive of Glasgow-based Clyde Property, said: "There are two cities in Scotland which are doing well, which is probably pulling up the national average.
"The most recent report from S1 Homes for the last quarter of 2011 shows in most of the west of Scotland there's been quite a dramatic fall, contradicted by Edinburgh and Aberdeen.
"I would suggest that it's the strong market in Edinburgh and Aberdeen that is skewing the figures for Scotland."
Mr Cullens said the rise could also be due to a decline in homes being repossessed, resulting in cut-price sales, compared to the period after the credit crunch.
Maurice Allan, associate at Edinburgh estate agent Strutt and Parker, said Edinburgh was "bearing up well".
He said: "The market is still not back to the peak of 2007, but I would say it's stronger than it was in 2010 or 2011.
"The mid to upper end of the market is stronger because the people entering that market have a good amount of equity and are finding it easy to get funding, whereas the first-time buyers are still struggling.
"It's driven by the jobs – financial services, banking, insurance, law, accountancy, and a lot of these big firms are headquartered here.
"We have a different set of economic circumstances compared to the rest of the country."
Mr Allan added that while the demand for homes priced £3 million or more was still struggling compared to 2007 levels, there was demand for homes in the £800,000-£1.5m bracket.
Michael Luck, managing director of Glasgow-based estate agents Slater Hogg & Howison, said that while house prices in west central Scotland had generally dropped in the past year, certain properties were still luring buyers.
He said: "There's a definite demand for two types of property – either houses that require complete refurbishment and people can put their own stamp on, and prices reflect that, or where they are in excellent condition and people can just move in."
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