House prices have experienced their steepest monthly fall for more than three years, with wet weather and the Olympics contributing to the fall, according to a new report.

The average cost of a home in Scotland was down 1.2% in August to £143,867, making it the biggest monthly fall in prices since March 2009.

Despite the decrease, experts said there was room for cautious optimism as the figures could just be "a blot on the copy book of recovery". The average price was down 2.1% on August last year, the latest LSL/Acad Scotland House Price Index shows.

It means the cost has returned to its November 2009 figure, when prices were recovering from the 2008 housing crisis.

Richard Sexton, director of e.surv chartered surveyors, part of LSL, said: "Areas of Scotland were deluged with twice the normal amount of rainfall. And the Olympics took up people's spare time."