THE average UK house price hit a record high in the month of August.
House prices increased by 0.4%, offsetting a 0.1% dip in July, according to an index.
In Scotland, the average home now costs a record high of £204,362 whilst a typical property in the UK costs a record £294,260, Halifax has said.
The annual percentage increase in Scotland therefore sits at 9.4%.
However, its report warned that “a more challenging period for house prices should be expected”.
Director of Halifax Mortgages Kim Kinnaird said the latest monthly increase is “relatively modest” compared with recent times, adding: “Over the last year the rate of monthly house price inflation has averaged around 0.9%.
READ MORE: What happens to house prices in a recession?
“The typical house price reached another record high in August – as it has done in seven out of the eight months so far this year.
“However, the annual rate of growth dropped to 11.5% from 11.8% in July, the lowest level in three months.
“While house prices have so far proved to be resilient in the face of growing economic uncertainty, industry surveys point towards cooling expectations across the majority of UK regions, as buyer demand eases, and other forward-looking indicators also imply a likely slowdown in market activity.”
Personal finance analyst at Bestinvest Alice Haine said those “suffering the most” in the market are those renting, “many of whom are not only facing higher household bills but also rent hikes as landlords look to pass on rising costs to their tenants”.
However, Nicola Sturgeon confirmed a rent freeze when she outlined her Programme for Government to Holyrood on Tuesday.
READ MORE: Nicola Sturgeon announces rent freeze – how will it work and will it affect me?
Although the Scottish Government is unable to act on soaring bills, the First Minister promised there would be action on housing.
A ban on evictions will also be in place throughout the winter.
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