House prices across the UK fell at the fastest annual rate seen in 12 years in June but the average home in Scotland still costs more than £200,000. 

Halifax said the UK annual fall of 2.6%, equating to around £7,500 being wiped off the average UK house price in cash terms, was the biggest since 2011. 

On a month-on-month basis, property values dipped for the third month in a row, with an average decline of 0.1% in June.

The index shows the average Scottish home price sits at £201,774 after an annual decrease of just 0.1% - a significantly smaller drop than that seen in many other regions of the UK.

READ MORE: Survey reveals where in Scotland house prices are most likely have risen and fallen

Kim Kinnaird, director of Halifax Mortgages, said: “The average UK house price fell slightly in June, down by around £300 compared to May, with a typical property now costing £285,932.

“This was the third consecutive monthly fall, albeit a modest one.

“The annual drop of 2.6% is the largest year-on-year decrease since June 2011.

“With very little movement in house prices over recent months, this rate of decline largely reflects the impact of historically high house prices last summer – annual growth peaked at 12.5% in June 2022 – supported by the temporary stamp duty cut.

“To some extent the annual growth figure also masks the fluctuations we’ve seen in the market over the past 12 months.

“Average house prices are actually up by 1.5% (around £4,000) so far this year, with most of that growth coming in the first quarter, following the sharp fall in prices we saw at the end of last year in the aftermath of the mini-budget.

“These latest figures do suggest a degree of stability in the face of economic uncertainty, and the volume of mortgage applications held up well throughout June, particularly from first-time buyers.

“That said, the housing market remains sensitive to volatility in borrowing costs.”

Ross McMillan, owner of Glasgow-based Blue Fish Mortgage Solutions, said it was still uncertain if the Scottish drop was attributed to "the usual seasonal trends or current economic volatility".

He said: “There is now no question that sentiment in the housing market has taken a significant negative turn and it seems inevitable that the second half of 2023 will see this reflected in market activity and subdued prices.

"With the attempt to hit notional inflation targets from current highs the sole focus of the UK government and Bank of England — at the expense, and to the detriment, of every other consideration — tough times lie ahead.

"Acknowledgement that raising interest rates exclusively has failed to address rising inflation and some respite from the bludgeoning of mortgage holders to allow measures already taken to be properly assessed would be welcomed.

"In Scotland, with the school summer holidays now in full swing, the volume of purchase enquiries is noticeably down but at this stage it's uncertain whether that can be attributed to the usual seasonal trends or current economic volatility.”

Here are average house prices across the UK and the annual increase or decrease, according to Halifax. This breakdown is based on the most recent three months of approved mortgage transaction data:

– Scotland, £201,774, minus 0.1%

– East Midlands, £333,343, minus 2.1%

– Eastern England, £238,755, minus 1.1%

– London, £533,057, minus 2.6%

– North East, £186,856, 0.2%

– North West, £168,240, minus 0.9%

– Northern Ireland, £223,493, minus 0.4%

– South East, £384,106, minus 3.0%

– South West, £301,248, minus 2.1%

– Wales, £215,183, minus 1.8%

– West Midlands, £251,139, 1.5%

– Yorkshire and the Humber, £203,674, 0.2%