'Cautious optimism' after house prices rise for second consecutive month

House prices have returned to the level they were at five years ago after the second successive month of rises, according to a report.

The average cost of a house in Scotland stood at just more than £146,300 in April, up almost £500 on the previous month's figure.

Experts said the housing market appeared to be coping well in the face of "treacherous" economic conditions and suggested it may have turned a corner after a difficult winter.

However, despite prices increasing nationally, 18 of Scotland's 32 local authorities have seen house values fall over the last year.

The findings were contained in the latest LSL/Acad Scotland house price index.

It shows that the price of a house in Scotland hit £146,309 in April, up 0.3% on March's total of £145,818.

The study further revealed that the number of transactions carried out in January to April 2012 was up 12% on the same four months last year, although the figure was still well down on early 2007 levels.

Richard Sexton, director of e.surv chartered surveyors, part of LSL, said: "The housing market is coping admirably with the treacherous economic conditions swirling around it.

"Prices have risen for the second month in a row, suggesting the market may have turned a corner following a difficult winter period where prices fell for four consecutive months.

"'Cautious optimism' describes the prospects for the market over the coming months."

Regional variations in house prices were also recorded by the study.

House prices over the past five years have increased in 14 of the 32 local authority areas, but with RPI (retail price index) increasing by 18% over this time, only the Orkneys, the Shetlands and the Western Isles have shown positive house price growth when expressed in real terms.

If the three island groups are excluded from the analysis, Aberdeenshire and Aberdeen City saw the largest increases in house prices over the five years, up 16% and 12.2% respectively.

North Ayrshire, East Ayrshire and North Lanarkshire experienced the largest declines in house prices compared to five years ago, with all of them experiencing drops of more than 11%.

Mr Sexton said: "Some areas have struggled more than others with the effects of the downturn and public sector austerity, with local economies still reeling from the effects of high unemployment and weak private sector investment.

"This has pushed down house prices well below the national average in some localities."

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