HOUSE prices in Scotland rose 2.6 per cent last year as the cost of the average property nudged towards £150,000.

The average property north of the Border is now worth £146,578, according to the figures from the Nationwide Building Society.

Across the UK, the average price was £211,156 in December and London was the weakest-performing region for the first time since 2004. In London, prices were down 0.5 per cent annually, taking the average to £470,922.

Robert Gardner, Nationwide’s chief economist, said subdued economic activity and an ongoing squeeze on household budgets is likely to exert a modest drag on housing market activity and price growth in 2018.

He said: “Overall, we expect house prices to record a marginal gain of around one per cent in 2018. Over the longer term, once the economy regains momentum, we expect house prices to rise broadly in line with earnings.”

Mr Gardner said much will depend on how Brexit impacts on the UK economy.