The average house price in Scotland has fallen by 0.7% to £223,923 in June, the latest index from Walker Fraser Steele reveals.

This represents the first monthly decrease since March but on an annual basis house prices in Scotland are still 1.3% higher than in June last year.

The index shows that Scotland’s recovery continues to be ahead of England and Wales.

Angus sees annual price gains for six months in a row, with house prices in June sitting on average at £195,744, a 0.7% increase from May.

Meanwhile, the City of Edinburgh retakes top spot where house prices have risen by 0.9% in June from the previous month reaching £337,619.

Walker Fraser Steele regional development director Scott Jack says: “After three months of growth and a new record high, Scotland’s house prices paused for breath in June with a slight drop of 0.7% or nearly £1,700 on average. Despite this fall, Scotland’s house prices continue to out-pace those seen in England and Wales.”

“On an annual basis, Scotland has shown positive movement in 11 of the last 12 months, again outstripping England and Wales which have yet to record a single month of annualised positive house price movement.”

“Whilst the overall picture in June was down, nine local authorities still experienced rising prices in the month, and prices in three local authorities; South Lanarkshire, Angus and East Ayrshire recorded new highs.”

“On the flipside, the remaining 23 local authorities saw a fall in prices in the month, which is a timely reminder that whilst interest rate cuts are now likely in the pipeline, the housing market continues to face headwinds from the current high mortgage rates and continuing cost-of-living pressures.”

“Notable local authority price fallers included East Lothian, which fell by 4.7% in June. Coupled with Edinburgh’s rise of 0.9%, saw the capital city re-take the mantle of Scotland’s most expensive local authority.”