House prices in some areas of Scotland remain well below the UK average, though estate agents north of the border have reported significant growths over the past 12 months.

According to the Ayrshire-based Donald Ross Estate Agents, the average cost of a home in Scotland now stands at £140,262, 29 per cent below the UK average.

However, as with elsewhere in the UK, rising interest rates and the crisis of affordability being faced by prospective first-time buyers have combined to slow the market slightly, the firm reported.

Steven Miller, managing director at Donald Ross, added: "The Ayrshire market continues to go from strength to strength, with the average home in Ayr now costing £174,235 - an increase of 16 per cent on the 2006 figure of £149,652.

"This is great news for the local market. Good quality family homes are still in high demand, with properties close to the schools currently being redeveloped achieving strong prices."

The latest figures from the Department for Communities and Local Government show that the north-east has the lowest house prices in England, with an average home in the region costing £148,992.