February property prices see fastest rise since 2007

The Your Move/acadata Index found that the average house price north of the Border rose by 1.7 per cent to a new record high of £169,742 during the second month of 2015 and the highest since the 2007, pre-crisis housing boom.

On an annual basis, prices rose by 6 per cent in the year to February, the strongest rise since August 2010.

Housing experts cited the mass completion of expensive transaction under the old stamp duty rates ahead of the introduction of the new land and buildings transaction tax (LBTT) at the beginning of this month.

Fifteen properties priced at £1 million or more were sold in Scotland in February, compared with six the previous month.

The Shetland Islands had the highest yearly rise in Scotland, with a 26.9 per cent increase.

Aberdeenshire, Edinburgh City, Aberdeen City, East Lothian and Angus also experienced peak prices in February.

Edinburgh topped the table with an average house price of £248,791, the report found.

Fifteen properties priced at £1m or more were sold in Scotland in February, compared to six the previous month.

They included one on the outskirts of Edinburgh which sold for just under £3.7m, the most expensive house to be purchased in Scotland since July 2011.

Your Move regional managing director Christine Campbell said: “Tactical tax considerations have helped foster price growth in the Scottish housing market and are likely to play a significant role in the months to come too.

“Now that the LBTT has come into force, we expect to see a temporary drop-off in the number of properties sold above £750,000, now liable for the top rate of tax - similar to the impact we’re currently seeing in London among £2m properties - in light of December’s stamp duty changes.

“Typically in the housing market cycle, we would expect home sales to ease back in February, in the aftermath of the costly Christmas period.”