HOUSE prices in Scotland have hit a record high after a surge since the turn of the year saw more than 10 per cent added onto the value of the average home.
Registers of Scotland (RoS) recorded a rise of 13.3 per cent between January to March, pushing the average price of property to £173,830, the highest figure recorded for any quarter since RoS began compiling quarterly statistics in 2003.
The increase has been put down to an increase in sales at the top end of the market as people sought to avoid the implementation of the Scottish Government's Land and Buildings Transaction Tax (LBTT), which replaced stamp duty on April 1.
All local authorities in Scotland showed a rise in average property prices, with the highest found in East Lothian, up 28.6 per cent on the same period in the previous year to an average of £248,902.
However, despite the jump in values, there was a 4.7 per cent drop in the number of sales during the period, the second consecutive quarter activity has been down on the year before.
RoS head of data, Hugh Welsh, said: "We've seen sustained growth in house prices throughout the 2014-15 financial year, with January to March's figures representing the highest quarterly increase in average price since quarter one of 2007-08.
"Future sales statistics will determine whether this is a one-off spike in quarter four average prices, or whether this is a trend that will continue."
Edinburgh recorded both the highest average for the quarter at £260,647 - a rise of 21.4 per cent - and the highest volume of sales, with 2,123 property sales.
It also accounted for Scotland's largest market value with sales of just over £553 million for the quarter, an increase of 29.2 per cent on the previous year.
The average price in Glasgow was said to be £134,466, and increase of almost 8 per cent on the year before. West Dunbartonshire showed the largest jump in the number of sales, with an increase of 10.6 per cent, while The biggest fall was in Midlothian, which dropped 28.1 per cent to 233 residential house sales.
The total value of sales across Scotland registered in the quarter increased by 8.0 per cent to just under £2.95 billion compared to the previous year. This represents the highest value of sales for this quarter since 2007-08.
Bob Fraser, senior property partner at estate agent Aberdein Considine, said: "The increase in average price is probably down to a surge in sales at the top end of the market as buyers looked to settle before the introduction of the Land and Buildings Transaction Tax.
"What we have here is a larger percentage of sales coming from the top end of the market, which drives up the average sale price."
Mr Fraser added that the next set of figures from Registers of Scotland will better reflect what is happening in the spring market, describing it as "a mixed picture" across the country.
Dr John Boyle, director of research and strategy at Rettie & Co, said the drop in the number of homes being sold was concerning.
He said: "In some areas the drop has been precipitous, particularly across the Central Belt. That's a concern. The drop in market activity is of more interest to the housing industry, be that estate agents or construction, than a rise in house prices.
"A lack of activity will also have an impact on the wider economy."
He added: "We saw today that economic growth has slowed, and it may be that people just don't feel out of the woods yet. Hopefully we will see an increase during the next quarter."
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