House prices are continuing to rise across Scotland despite an overall drop in sales, according to official records.

The average cost in the first quarter of this year was £150,257 - 7.4 per cent higher than that period in 2007. The increase came despite an “expected” dip from £158,360 at the end of last year, the Registers of Scotland report showed.

The volume of all registered sales - cash and mortgage - dropped since the first quarter of 1007 by just under 10 per cent, to £4.1 billion.

Geoff Lockett, of the estate agents Strutt and Parker, said that nervousness fuelled from the South of England meant fewer properties were on the market. “It's good news for Scottish homeowners - not so great for solicitors,” Mr Lockett said. “Speculation has virtually ground to a halt; investment is massively reduced. That's why there are fewer properties coming on the market. The supply- and-demand balance remains - fewer people are buying and selling. I think the next 12 months will be a steady market with no significant growth or decline.”

The North East has Scotland's biggest year-on-year price rises, at 13.8 per cent.

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