House price growth in Scotland has started to slow after three months of rises, Walker Fraser Steele has reported.

The chartered surveyor’s house price index revealed that while the average house price in Scotland increased by 1.3% annually, it dropped by 0.7% month-on-month in June, with the average price standing at £223,923.

Despite the monthly drop, prices nationally remain more than 1% above their earlier peak in September 2023 and the firm added that Scottish house prices only briefly reversed on an annual basis, while prices in England and Wales have languished since mid-2023.

Regional development director at Walker Fraser Steele, Scott Jack, said: "After three months of growth and a new record high, Scotland’s house prices paused for breath in June with a slight drop of 0.7% or nearly £1,700 on average. Despite this fall, Scotland’s house prices continue to out-pace those seen in England and Wales.

"On an annual basis, Scotland has shown positive movement in 11 of the last 12 months, again outstripping England and Wales which have yet to record a single month of annualised positive house price movement."

Although conditions were quieter in June, nine local authorities experienced rising prices in the month, while South Lanarkshire, Angus and East Ayrshire all hit new market highs.

Despite 23 local authorities seeing drops in prices, 20 reported stronger prices than a year previously.

Whilst the number is not as high as the previous month, Walker Fraser Steele said that June represents the fifth month in a row where there has been a positive net balance of local authorities reporting higher than lower prices year-on-year.

Of these risers, six reported price increases of at least 5% over the year.

Jack added: "Whilst the overall picture in June was down, nine local authorities still experienced rising prices in the month, and prices in three local authorities; South Lanarkshire, Angus and East Ayrshire recorded new highs.

"On the flipside, the remaining 23 local authorities saw a fall in prices in the month, which is a timely reminder that whilst interest rate cuts are now likely in the pipeline, the housing market continues to face headwinds from the current high mortgage rates and continuing cost of living pressures.

"Notable local authority price fallers included East Lothian, which fell by 4.7% in June. Coupled with Edinburgh’s rise of 0.9%, saw the capital city re-take the mantle of Scotland’s most expensive local authority."

---