Average house prices in Scotland rose for the second month running in May, new figures show.

Walker Fraser Steele’s May house price index reveals the average property price increased by £2,600 (1.2%) to £224,033 compared to the previous month.

This is £4,125 (1.9%) higher than May 2023 and £41,000 (22.4%) higher than they were at the start of the coronavirus pandemic in March 2020 (£183,017).

Walker Fraser Steele’s regional development director Scott Jack described the resilience of the Scottish market as ‘remarkable’.

He says: “This strength of performance has to be seen in the context of broader market trends.

“Affordability has become the key issue in mortgage lending and is impacting would-be buyers.

“Inflation continues to loom over the UK and higher interest rates are an inevitability which makes the resilience of the Scottish market all the more remarkable.

“The squeeze on borrowers will continue and lenders have already sign-posted a contraction in the supply of mortgage loans over the coming months.”

In real terms (after allowing for consumer price inflation) the average house price in Scotland has risen by 4.6%.

Scotland transaction levels in 2023 have fallen to their second lowest since 2013, despite house price being the second lowest of all countries and regions in Great Britain.

This annual rate of growth has increased by 0.3% from April’s 1.6%, and is the second consecutive upward movement in the annual rate of growth in 2023.

Scotland is not alone in seeing prices rise in May – in the North East of England they rose by 0.9%.

The average house price in the North East is now £202,491, with the Welsh average standing at £241,994.