SCOTLAND's housing market is showing encouraging growth with a continued rise in sales and inquiries, according to research.

New buyer inquiries and agreed sales rose for the third consecutive month in April, the Royal Institution of Chartered Surveyors (Rics) said.

Rics added surveyors are upbeat about house prices in the months ahead. More than one-quarter predict rising prices in the next year, compared with just one in 20 who think they will fall.

Rics Scotland director Sarah Speirs said: "It is encouraging that the Scottish housing market continues to indicate we are moving away from the negative figures witnessed in previous years. However, activity is still much lower than pre-crisis norm and action is required to increase finance and give the market the real thrust that is required."

l One of the largest houses in the Hebrides has had its price slashed by £1.4 million. Islay House at Bridgend, on Islay – which sits in 28 acres of mature grounds with views across Loch Indaal and out to sea – was on the market for £2.25m in 2007. However, after failing to sell, Knight Frank has now marketed the property at £850,000. The 24-bedroom house is home to just one person – former US Navy pilot Captain Tom Friedrich.