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Housing market ended 2015 on a high with average prices up

LONDON - DECEMBER 06:  Estate agent billboards in the West End of Glasgow December 6, 2007 in Glasgow,Scotland.The British economy is beginning to feel the effects of the credit crisis which began this year. House prices have begun to fall and the retail sector is predicting a difficult Christmas period.  (Photo by Jeff J Mitchell/Getty Images)
LONDON - DECEMBER 06: Estate agent billboards in the West End of Glasgow December 6, 2007 in Glasgow,Scotland.The British economy is beginning to feel the effects of the credit crisis which began this year. House prices have begun to fall and the retail sector is predicting a difficult Christmas period. (Photo by Jeff J Mitchell/Getty Images)

The housing market finished a “rollercoaster” year on a high as average prices grew 2.5% over the course of 2015, according to a report.

The increase means the typical value of a home in Scotland reached just over £170,000 in December and was the strongest house price growth for seven months.

However, Aberdeen experienced the steepest drop, with an annual fall in house prices of 6.8% to £212,598.

The figures were contained in the latest Your Move/Acadata Scotland house price index.

It showed a rise in the amount of housing transactions across the country, with December showing the highest number for the month for eight years – up 21% on last year.

Christine Campbell, Your Move managing director in Scotland, said the £4,000 jump in the value of a typical property is a “well-deserved reward” for Scottish homeowners after a volatile year.

“But the increase over the year to December is still below the 4.4% rise in 2014, as growth was skewed by the introduction of the Land and Buildings Transaction Tax (LBTT),” she added.

Speaking about the fall in price in Aberdeen, she said: “This decline has been driven by the drop in demand for homes in the area, as the tumbling oil price reduces employment and investment into the city.

“Aberdeen has also felt the negative affect of the introduction of the LBTT, as it’s home to a large number of higher value properties which the tax hit hardest.”

Regional figures detailed in the report revealed there were 25 local authority areas where prices increased over the year, with seven areas having price falls.

Edinburgh was top of the table, with an average price of £245,871, but Stirling experienced the highest increase where the average cost rose by £19,100, or 11.1%, to £191,888 compared to December last year.

John Tindale, senior housing analyst for Acadata, said 2015 had been has been an “eventful” year in Scotland’s housing market.