AOL

Property prices in Scotland continue to rise

House prices continue to rise across Scotland despite an overall drop in sales, official records have revealed.

The average cost in the first quarter of this year was £150,257 - 7.4% higher than the same period in 2007.

The Registers of Scotland report showed that the comparable increase came despite an "expected" dip from a peak of £158,360 at then end of last year.

The report found that the volume of all registered sales - cash and mortgage - in the first quarters of 2007 and this year dropped by just under 10% to £4.1 billion.

Geoff Lockett, a partner at estate agents Strutt and Parker, said "nervousness" fuelled from the south of England meant fewer properties were on the market.

He said: "It's good news for Scottish homeowners, not so great for solicitors. Property speculation has virtually ground to a halt, investment is massively reduced. That's why there are fewer properties coming on the market.

"The supply and demand balance remains because fewer people are buying and selling."

He continued: "I think the next 12 months will be a steady market with no significant growth or decline. It wouldn't surprise me if the English market reduced in value."

The report showed that the north east is still out performing the rest of the country with year-on-year prices up by 13.8% from £151,965 to £172,930.

Other regions recorded increases between 4.8% in Lothian and 8.8% in central. Homes in Lothian, which includes Edinburgh, are still the most expensive in the country, at £187,316.