HOUSE prices are on the rise in Scotland as the property market shows signs of adjusting to the country's new version of stamp duty, a survey has found.
The average value of property increased by 1.1 per cent in August, the second month of growth since Land and Buildings Transaction Tax (LBTT) was introduced in April, taking Scottish house prices back above December 2014 levels.
August was the strongest month for sales in eight years, with activity up 7.5 per cent on an annual basis and LBTT drove a faster annual sales growth over the summer than anywhere else in Britain, according to Your Move's latest house price index.
Scotland has also seen a much bigger increase in housing transactions than any other part of Britain, despite a high-end tax hike and a slump in the oil industry.
There were 28,191 property transactions in June to August 2015, a six per cent rise on the same quarter last year, compared with a two per cent fall in England and Wales from 241,521 to 237,057.
The slump in the oil industry has "taken its toll" on expensive house sales in the Aberdeen area, with sales of detached properties falling 41 per cent in the city and 25 per cent in Aberdeenshire.
Your Move said "there is evidence of a north/south divide in England and Wales, with those regions in the north of the country seeing higher growth in transaction levels compared to the south".
Semi-detached homes have driven price rises and sales growth, with only six sales of £1 million-plus properties in August.
Christine Campbell, Your Move managing director in Scotland, said that "the colour is starting to return to the cheeks of the Scottish property market".
She added: "This rapid recent growth in Scotland is grounded in the new LBTT rates, which are stimulating demand at the bottom and middle rungs of the property ladder."
John Tindale, senior housing analyst for Your Move partner Acadata, said: "The housing market remains robust in Scotland, despite a falling off in high-value sales.
"Scotland has seen a far higher increase in housing transactions than any other country/region in Great Britain over the three-month period June to August 2015, compared to the same three months in 2014.
"Within England, there is evidence of a north/south divide, with those regions in the north of the country seeing higher growth in transaction levels compared to the south."
The new LBTT increased the up-front costs on more expensive properties.
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