But prices were down 0.2% in August compared to the previous month and down 0.3% on an annual basis taking the average price of a home to £143,278, according to the LSL Acadametrics House Price Index.
Gordon Fowlis, regional managing director of Your Move, an estate agency chain that is part of LSL, said first time buyers account for the majority of the increase in sales but it is a much more muted recovery compared to south of the border.
There is also considerable regional variation. Clackmannanshire has seen prices rise 7.5% month on month but there are low transaction rates and prices are still 9.2% down on an annual basis.
In Edinburgh prices are down 1.9% month on month and down 3.6% year on year but in Glasgow they are up 1.5% month on month and up 4% year on year.
Other locations to see price increases include Aberdeen with monthly growth of 1% and annual growth of 6.6%, the Scottish Borders with a monthly rise of 4.1% and annual growth of 1.6% and the Shetland islands with monthly growth of 3.1% but prices are still down 1.1% on an annual basis.
Prices have fallen 5.8% in Moray on a monthly basis and 7.6% on an annual basis, are down 2.2% monthly and 3.4% annually in the Highlands and down 2.9% monthly and 0.5% annually in East Dunbartonshire.
‘Falling housing prices have put a dampener on the Scottish housing market. The sluggish rate of growth, shown by the drop in prices by £303 monthly and by £480 compared to a year ago, adds to the many uncertainties facing the Scottish housing market,’ he explained.
Yet there are several signs that things are changing. ‘The mortgage market is perking up now that the economy is on the mend, with figures showing sales are up by 10% in January to August this year compared to 2012. This is due to the bounce back in first time buyers which has kick started the market,’ said Fowlis.
He also pointed out that momentum is building in the housing market as the government is stretching out a helping hand to first time buyers and it is clear that rising first time buyer lending has boosted sales activity significantly as they can now take advantage of the many attractive mortgage deals on offer from banks and building societies.
There has been a swift improvement in the availability of high loan to value mortgages which has sent waves of confidence across the board. Banks are being proactive in their approach and are happier to lend to borrowers that lack big deposits. Buyers are open to an improved range of mortgage deals, better pricing and more enhanced product choice due to the rise in competition.
The Scottish Government has...
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