Highland house prices 'rise fast'

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House prices in the Highlands have risen faster than any other area in Scotland in the past decade, new statistics have revealed.

The Bank of Scotland said the cost of a home in the region has more than trebled since 1997, rising by 221%.

This puts it ahead of Edinburgh, where house prices have also trebled, increasing by 201% in the same period.

The survey found that East Renfrewshire was now the most expensive place in Scotland to buy a property.

Last year, buyers paid £229,950 on average to secure a home in the county, which includes towns such as Newton Mearns and Eaglesham.

The area overtook Edinburgh, traditionally the most expensive place to buy, where a property last year cost £228,051 on average.

They come because of the lifestyle and the high quality of living and the links to the outdoors Sarah WoodcockHSPC

The average price of a house in the Highlands in 2007 was £173,081, more than three times the £53,991 a home cost 10 years ago.

Sarah Woodcock, manager of Highland Solicitors Property Centre, said: "In the Highlands, particularly around Inverness, we've seen an incredible rate of growth with businesses opening up and lots of people coming to Inverness.

"They come because of the lifestyle and the high quality of living and the links to the outdoors.

"Some people might have sold their property down south and come to the Highlands to get a bit more for their money."

Other parts of Scotland also saw strong house price growth, with prices in all Scottish counties more than doubling, according to the annual survey.

Although house price growth has been strong north of the border, prices have risen slower than elsewhere in the UK.

'Some hope'

Eight Scottish areas were among the 10 UK counties with the smallest increase in average house prices in the 10 years to December 2007.

North Lanarkshire had the smallest increase in the UK, with prices rising just 149% over the course of the decade.

Five of the 10 least expensive areas in the UK were also in Scotland.

A spokesman for the Bank of Scotland said: "This research over a longer period shows that Scotland's house price growth has actually been slower than the rest of the UK."

He said house prices were expected to continue to grow in Scotland in 2008.

"But it is likely to moderate, which is likely to give first time buyers some hope, and salaries a chance to catch up," he said.