SCOTS are burying their heads in the sand over how much the crash in the housing market has wiped off the value of their homes, a survey has revealed.

Fresh data from the Office of National Statistics (ONS) shows that most people believe their house is worth only £1000 less than it was on the eve of the economic downturn in 2006.

But the reality is more than 10 times that amount has dropped off the value of the average home in Scotland.

The ONS survey analysed the wealth of the nation, both in terms of property and the value of possessions, and also looked at householders' perceptions about the value of their assets.

Statisticians found the average Scot believed their home was worth £150,000 last year, compared to £151,000 in 2006.

However, figures from HBOS used to illustrate the difference between expectations and actual values show the average price of a home north of the Border has dropped by £11,000 during the same period, falling to a low of £138,000 last year.

Martin Ellis, head of market research and analysis at HBOS, said the figures hammered home the way the economic downturn had affected the housing market. He said: "Price levels proved unsustainable when the economic and financial market downturns hit demand, and significantly reduced the availability of mortgage finance. These events caused a widespread decline in property values across Scotland."