Scottish house prices 'up despite fall in demand'

House prices across Scotland have continued to rise despite a fall in demand, according to a report.

The Royal Institution of Chartered Surveyors (Rics) said September saw Scottish house price growth remain in positive territory.

A third more respondents reported a rise rather than a fall in prices.

Surveyors also appeared to be optimistic about the future, with 14% more participants predicting a growth in prices in the next three months.

However, new buyer inquiries declined significantly across Scotland during September, with 16% more surveyors reporting a fall in interest due to a lack of choice for would-be purchasers.

The picture remained mixed elsewhere in the UK, with a greater level of caution in central London.

The overall drop in the UK housing market is thought to have been fuelled by uncertainty over the result of the EU referendum and the higher stamp duty in place on investment property purchases.

Rics chief economist Simon Rubinsohn, said: "The UK market does now appear to be settling down following the significant headwinds encountered through the spring and summer.

"Buyers do appear to be returning, albeit relatively slowly, but the big issue that continues to be highlighted by respondents is the lack of fresh stock on the market, which has been evident in Scotland over the last year.

"Although this is not a new story, it is a significant one having ramifications for both prices and the level of turnover."