Scots house prices rose 2.6 per cent in 2017 - Nationwide

This compares with the average UK price of £211,156 in December where growth rates were in line with those north of the border.

London was found to be 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.

Looking ahead to 2018, the Nationwide said it expected house prices for the year to rise by about 1 per cent.

“Housing market activity is expected to slow only modestly, since unemployment and mortgage interest rates are expected to remain low by historic standards,” said Mr Gardner.

“Similarly, the subdued pace of building activity evident in recent years and the shortage of properties on the market are likely to provide ongoing support for house prices.”

However, he added that 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.”