Average house prices rose £6,868 in Scotland last year according to analysis of the latest statistics by a leading property firm.

DJ Alexander Ltd - the largest lettings and estate agency in Scotland - said that the latest data from the monthly house price index shows that between June 2023 and May 2024 average house prices in Scotland increased from £184,567 to £191,435.

In England and Wales average house prices rose by £4,215 over the same period.

Across Scotland there were substantial variations in price rises (please see table below) with Stirling recording the highest increase of £24,666; Edinburgh rising by £12,862; West Dunbartonshire up £12,507; Clackmannanshire higher by £10,454; and Argyll and Bute up by £9,557.

There were two falls in value last year with the largest in Aberdeen where average prices dropped by £1,124 and Dumfries and Galloway which dropped by £25.

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David Alexander, the chief executive officer of DJ Alexander Scotland, commented: “The Scottish housing market has remained remarkably resilient over the last few years.

"An increase of £6,868 equates to a 3.7% rise over year at a time when interest rates remain high and amid continued concern over the sluggish performance of the economy.”

“Despite all of these factors almost every part of Scotland recorded an increase in average prices with four areas recording a rise of over £10,000 during the twelve-month period.”

David continued: “Edinburgh and Glasgow and their surrounding areas remain popular with high demand resulting in rising prices. People are once more being drawn back to live and work in or near our major cities.

"The substantial increases in Argyll and Bute and Clackmannanshire indicate a bounce back from recent falls in value over the last few years.

“These figures are remarkably positive and indicate a housing market that remains robust and buoyant particularly in comparison to our neighbours south of the border.

"With interest rates likely to fall in the coming months, employment remaining high, and utility costs falling I believe these increases in Scottish house prices are likely to continue in the coming year.”

Back in May, Savills predicted that house prices in Scotland would grow at almost twice the rate of those in London during the next five years.   

The estate agents have forecast that the value of the average property north of the border will increase by 25.8 per cent between now and the end of 2028, compared to 14.2% in London.  

This would add around £47,000 onto the value of a typical house, with the Registers of Scotland currently putting the average price of a home at £190,000 in March.  

Savills made the prediction after upgrading its forecast based on new economic data.  

Meanwhile, The Halifax found that Scottish property prices rose +1.5% year-on-year, according to its latest House Price Index (HPI). 

Across Britain, property values are expected to have increased by just over a fifth (21.6%) in the next five years, revised from a previous forecast of 17.9%, Savills said. 

Lucian Cook, head of residential research at Savills, said: “The outlook for 2024 has improved since our last (November 2023) forecasts as mortgage costs have nudged down slightly and are much less volatile. 

“The outlook for economic growth has also slightly improved, pointing to relatively modest house price growth this year, with greater potential over the following few years.” 

Mr Cook said that lenders have “fairly aggressively priced in the prospect of cuts in bank base rate, causing buyer confidence, and prices, to recover somewhat”. 

But he cautioned that wider global uncertainties have meant that swap rates, which lenders use to price mortgages, have continued to rise.