Scottish property prices rose by 8.7% on average in the year to June, according to Walker Fraser Steele’s Scotland House Price Index.

Month-on-month, Scottish house prices rose by 0.9% to reach £202,296.

Annually, prices in Orkney Islands rose by the greatest margin, up 20.1%, while property prices in East Lothian increased by the largest amount month-on-month, up 2.4%.

Alan Penman, business development manager at Walker Fraser Steele, said: “This summer we are experiencing cooling prices and transaction levels.

“The average house price now stands at £202,296 which is 2% lower than the peak achieved in March 2021 just before the tax holiday expired.

“That said, as a piece of context, we should remember that all bar one of the 32 local authority areas have reported an increase in their housing values over the last year – the exception being Na h-Eileanan Siar.

“The monthly movement of -0.9% reflects a reduction in
prices in 21 local authority areas and a rise in 11, five of which were responsible for over 80% of the positive movement in the calculation of the national average.

“As we continue to move through the year we will continue to see the impact of the end of the Land and Buildings Transaction Tax holiday in April on both prices and transactions, which are from April to June of this year on a par with 2018 levels.

“The annual rate of price increase in the lead-up to the withdrawal had reached 11.4% per annum between October 2020 and March 2021.

“Prices however reflect many dynamics in a market and, like everywhere else in the UK, they are an expression of supply and demand as much as anything else.

“The Royal Institute of Chartered Surveyors reported recently that the lack of properties coming onto the market is continuing to support prices and this trend will continue over the coming months.”