HOUSE prices in Scotland have risen by their highest amount since 2007, according to new official figures.

The Office for National Statistics (ONS) said that property prices in Scotland rose by by 14.6 per cent over the last year, adding thousands onto the value of the average home and outstripping boom areas such as the South East of England.

The latest ONS data shows that the value of a typical property in Scotland is now £207,000, a new index record

That is compared with a rise of 9.4 per cent in England, 7.5 per cent in Northern Ireland and 5.7 per cent in Wales with the average house price across the UK as a whole said to be £273,000 in March of this year.

The report said the number of mortgages for house sales in Scotland increased by around 50 per cent between February and March and a significant portion of these were for houses costing more than £500,000.

It also highlighted the much-publicised surge in activity before the implementation of the Scottish Government's Land and Buildings Transaction Tax (LBTT), which made it more expensive to buy higher-value properties.

The ONS report said: "It should also be noted that the Land and Buildings Transaction Tax replaced (the) UK stamp duty land tax in Scotland from 1 April 2015, which may have had an impact on the increase in prices."

The strong upswing in house price growth north of the border meant that Scottish house prices have grown at a faster rate than those in southern England over the last year.

The pace of annual house price inflation picked up from 7.4 per cent in February to 9.6 per cent in March, marking the first acceleration seen since September 2014.

Simon Rettie, Managing Director at estate agent Rettie, said: "The start of 2015 has been very strong for our Sales Teams focusing on the prime market.

"This was partly driven by the introduction of LBTT on 1st April 2015 and the front-loading of the market. It is also likely to be as a result of a post referendum recovery and improving consumer sentiment. We have seen slowdown in this market post-April as buyers at the top of the market take stock of the higher LBTT rates."

John Boyle, the firm's Director of Research, added: "The Scottish prime housing market is emerging from a very challenging few years.

"What we are seeing in terms of house price rises is partly a skewing effect of LBTT and the market should now settle down, particularly as there is less political uncertainty following the UK General Election."

However, some have warned that rising house prices will cause problems for first-time buyers and those struggling to get a foot on the property ladder.

Andrew Montlake, director at Coreco Mortgage Brokers, said: "These latest figures show that house prices are gathering pace once more, which will dismay many first-time buyers anxiously hoping that prices would stabilise at the very least.

"With a post-election surge of activity in the housing market expected, more stock is needed, especially in high-demand areas, to avoid further rises."

Adam Lang, Head of Communications and Policy at homeless charity Shelter Scotland, added: "News from the Office for National Statistics that house prices in Scotland have seen their highest annual increase since 2007 is no reason for celebration.

"And at a time when many are struggling to afford a home and make ends meet, it's ironic that some will see this is a positive sign the housing market is recovering.

"True recovery suggests a return to health. But, when wages are stagnant and housing costs are already high, an increase in house prices only makes it even harder for people - especially young families - to get a home of their own. For many people across Scotland these statistics are bad news."