House prices in Scotland increased by 2.5% year-on-year in August, the strongest growth since April, Walker Fraser Steele has revealed.

The chartered surveyor found that the average house price in Scotland stood at £226,623 in August, a jump of 0.9% month-on-month.

This again was the strongest performance since April 2024.

Walker Fraser Steele said in its house price index that the Scottish housing market continues to see an "earlier and stronger price revival than England and Wales".

Regional development director at Walker Fraser Steele, Scott Jack, said the results show that the "future looks promising for house prices".

He said: "Improved mortgage pricing has been key to that and while downward expectations of interest rates remain, this will continue to help buyers’ affordability."

Not only have prices increased, but Jack added that the firm’s data shows that August could become the "strongest month for the year so far for sales transactions".

In terms of regions, Inverclyde was the best performer, with house prices increasing by 15.6% annually. The average house price stood at £137,544 in August.

Other top performing regions included the Shetland Islands (10.2%), West Lothian (9.2%) and East Renfrewshire (8%).

Despite being one of the best performing regions earlier in the year, Na h-Eileanan Siar saw its average house drop by 9.8% annually.

Jack said that although the Scottish housing market is holding strong, there are potential factors that could affect prices going forward.

He concluded: "The Scottish market for now is performing better than its neighbours south of the border but we are mindful there are headwinds on the horizon in the shape of tax rises in the October budget that will impact buyers, landlords and the bank of mum and dad.

"The outcome of the election in the United States will also be key if it negatively impacts confidence in the money markets and therefore mortgage pricing."

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