The average house price in Scotland has reached over £226,000 for the first time, increasing by 2% annually in September, Walker Fraser Steele has revealed.

The average Scottish price now stands at £226,113, which is an increase of 0.2% month-on-month.

The chartered surveyor firm said that the Scottish housing market continues to experience a "low-key recovery, reflecting the overhanging effects of earlier cost-of-living pressures and higher mortgages on household budgets".

The latest house price figure is the fifth time that the Scottish market has hit a new peak this year.

Regional development director at Walker Fraser Steele, Scott Jack, said: "Our data shows this month that average house prices in September grew by a modest £400 compared with August.

"Notwithstanding the improving backdrop of the cost of living, the Scottish market appears subdued in September, with 14 local authority areas reporting rising prices in the month whilst 18 saw price falls."

Year-on-year, the best performing regions were Inverclyde and the Shetland Ireland, with house prices increasing by 12.6% and 12.3%.

East Lothian (10.2%), Scottish Borders (8.3%) and West Lothian (7.9%) also performed well annually.

However, across this period, Na h-Eileanan Siar saw its annual house price fall by 13.9%, while prices in East Dunbartonshire also dropped by 9%.

Jack concluded: "This is a limited and bumpy recovery to date, with prices up by only 2-3% on a year-on-year basis in recent months. The data does not yet reflect any impacts on buyer and seller confidence from the budget, which will become evident over the coming months and it will be interesting to see if mortgage pricing continues to harden as swap rates have risen.

"The Bank of England base rate cut was helpful for affordability and will doubtless ease some home owners’ payments but it is unlikely to provide a significant boost to home buyers."

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