House price growth in Scotland has grown by 1.3% annually in October, which is the lowest growth since February.

Walker Fraser Steele revealed in its latest house price index that the average house price in Scotland stood at £224,239, which is a 0.6% month-on-month decline on September.

However, the chartered surveying firm found that year-on-year, sales in October have increased by a fifth.

In terms of regions, Inverclyde was the best annual performer, with house prices increasing by 9.2% to £143,041, while prices in the Shetland Islands (£207,253) and North Lanarkshire (£170,598) increased by 5.7% and 5.4% respectively.

However, Na h-Eileanan Siar was the worst performer, with prices dropping by 10.5% to £153,320.

Regional development director at Walker Fraser Steele, Scott Jack, said: "This year, Scottish property has been outperforming every other part of the UK but the market north of the border also has to navigate wider economic challenges.

"Housing markets run on sentiment, and the recent budget changes will soon show their impact. The additional dwelling rate increase from 6% to 8% has already spurred a rush to beat the 4 December cut-off, with reduced stock and higher rents likely outcomes for the private rented Sector. The upcoming LBTT review in spring 2025 is expected to affect all residential transactions, adding further uncertainty to the market.

"We can be fairly confident though that there may be some further slowing in the run up to the holiday period as there is no stamp duty rises in April next year as there are in England and Wales to force buyers’ hands.

"The outlook for 2025 looks brighter assuming wage growth continues and rate cuts feed through over the course of the year."

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