ESTATE agents say that the Scottish property market is continuing to recover with new figures showing a rise in prices and more homes being bought and sold.

The latest quarterly survey by Rettie & Co found that transactions rose by a fifth in the first three months of this year compared with the same time last year, with average prices now also increasing at a faster pace.

This recovery has also spread from cities to rural areas, with sales up by 11% in the Scottish Borders compared with last year.

The report follows figures from Nationwide building society, which found that house prices across the UK have reached an all-time high of £186,512 on average, after leaping by 11.1% within 12 months.

The new peak seen last month surpasses a previous record set in October 2007, before the financial ­downturn took hold, when the average value was £186,044.

Dr John Boyle, director of research at Rettie & Co, said: "If 2013 was the year that the housing market turned the corner, 2014 has seen a continuation in recovery conditions, although the market is still much reduced in terms of activity levels than it was seven years ago.

"The fundamentals continue to look strong with improving levels of economic growth, less restricted lending and improving consumer sentiment."

Managing director Simon Rettie said: "The levels of transactions in Edinburgh, Glasgow and Aberdeen, in particular, continue to increase as buyers' confidence returns and sellers can reasonably expect full value when placing properties on the market.

"There is a shortage of stock of most types, often leading to competition and premium offers."