HOUSE sales in Scotland have risen to their highest level for almost a decade.

New official figures show that the number of properties being bought and sold between January and March rose by 18.2 per cent compared to the same time last year.

Overall, 19,802 properties changed hands, the highest volume of sales for these months since 2007-08 according to data published by Registers of Scotland.

Estate agents say the increase is a sign of an improving economy, with housing markets in Scotland's cities leading the way.

However, while sales are climbing the average cost of property has dropped, mostly because fewer homes at the top end of the market are being sold.

RoS’ director of commercial services, Kenny Crawford, said: “We’ve seen a sustained increase in the volume of sales throughout the 2015-16 financial year.

"While volumes are up this quarter, prices are down by 8.4 per cent compared to the previous year, bringing the average price to £159,198.

“This time last year, we saw a spike in house prices, with an increase in the number of high value property sales.

"By comparison, this year has seen an increase in the volume of lower value properties being sold, which may account for this year’s lower average price. Future sales statistics will determine whether this is a one-off decrease, or whether this is a trend that will continue.”

All property types showed an increase in sales volumes across Scotland, with flats seeing the biggest increase at 24.2 per cent.

The biggest increase on the mainland was found in Midlothian, where activity in the market was up 48 per cent to 333, while East Renfrewshire saw the biggest drop, falling 14.5 per cent to 288.

Sales on Orkney more than doubled from 44 to 108.

Edinburgh remains Scotland's largest housing market, with sales totalling more than £554.6 million during the first three months of the year, up 3.3 per cent on 2015.

In Glasgow sales were up by a round 400, with the average price now said to be £127,857.

The dark clouds of financial uncertainty looming over the oil industry in Aberdeen are visible in statistics for the Granite City, where sales were down by almost a tenth and prices have plummeted.

The average price of a detached home in Aberdeen fell by a fifth to £356,534, with similar drops in all property types in the city.

Doug Telfer, a Partner with Glasgow solicitor estate agent Aberdein Considine, said: “What we are seeing is a large volume of homes being sold at the lower end of the market and slightly fewer at the top, due perhaps to the higher levels of tax people now have to pay.

“However, what these statistics really emphasise is the strength of the economic recovery in places like Edinburgh and Glasgow since the recession.

“Both these markets were hit badly in 2007/08, but the volume of sales in both of these cities is up by around 20% - and this has been consistent for a number of months now.

“There are a lot of buyers in both markets, resulting in properties selling fast and often for above home report value.”

Michelle Grant, investment director at Grant Property, added: “The increase in volume sales reflects what we are seeing on the ground. Our buyers are experiencing high levels of competition when trying to secure prime city centre properties on behalf of investors.

“In Glasgow we are bidding against on average eight people for each property and in Edinburgh it can be as high as 20. We have also recently seen properties selling for as much as 15 per cent over the asking price in Glasgow and as much as 30 per cent in Edinburgh.

“This positive increase could be attributed to supply, increased salaries, affordability and low inflation.”