House prices continue to rise in Scotland

The cost of the average home north of the border stands at £84,086 compared with £139,716 for the UK as a whole.

Most towns recorded strong increases with Dumbarton at 50%, Helensburgh at49% and Cupar at 48%.

Scotland's house prices have now increased by nearly 40% since 2000.

Most affordable

Experts say the figures underline the strength of the Scottish housing market.

They are contained in the latest Bank of Scotland (BoS) Quarterly Scottish Housing Price Index.

Despite the recent rapid increase in house prices, Scotland has still got the most affordable housing in the UK.

The average house price in Scotland now stands at 3.3 times average earnings, compared with five for the UK as a whole.

During 2003, 12 towns broke the £100,000 average house price barrier for the first time, taking the total number of towns in Scotland with average prices above this figure to 17.

Even though house prices have risen so rapidly during the last 12 months, Scotland still has some of the most affordable housing in the UK BoS

As a result, if the trend continues according to the BoS, an increasing number of first time buyers will find it more difficult to gain a foothold on the housing ladder.

House prices remain highest in Edinburgh with an average property price of £164,891 - 20% higher than a year ago - and well ahead of the UK average of £139,716.

Shane O'Riordain, BoS spokesman, said the Scottish housing market was continuing to benefit from the continuing growth of the economy.

"Even though house prices have risen so rapidly during the last 12 months, Scotland still has some of the most affordable housing in the UK," he said.

"Edinburgh continues to be the jewel in the Scottish housing crown, but we forecast that house prices will pause for breath in the capital during the coming months as potential home-owners start to look for more affordable housing but still within commuting distance of the city."

Most regions of the country have seen very high house price increases during 2003, the highest being in the Borders, 35%, followed by Tayside, 26%, and Highlands, 23%.

Figures also show how Scotland tops the table of UK regions with 23,000 new-build homes constructed in 2001/02.