A lack of inventory drove up property prices in Scotland last year, with the latest data from the Bank of Scotland revealing the places that recorded the highest growth.

On average, residential property prices across Scotland increased by 8.8% over the past 12 months.

The average home north of the border ended 2021 costing £207,778 – an increase of £16,761 on 2020’s figure of £191,017.

Motherwell has been identified as the area in Scotland that recorded the greatest hike in property prices, rising by an average of 17.3%, according to the latest Bank of Scotland data.

The average price of a property in Motherwell now stands at £177,118, up from £151,105 12 months earlier.

Hamilton saw the second biggest increase, with the average price of a home in the South Lanarkshire town now costing £159,176, up 13.7% or £19,225 year-on-year.

Unsurprisingly, the expensive place to buy property in Scotland remains Edinburgh, where the average price of a property costs £293,406 – up 7% or £19,160 on last year.

Graham Blair, mortgages director at Bank of Scotland, said: “Scottish house prices have enjoyed another bumper year, with growth outperforming the UK average and properties in almost every town now worth more than 12 months ago.

“The feedback we’re getting from customers matches what we see in the data – prolonged working from home has influenced where people want to live and the type of property they want to own.

“So while our major cities continue to be attractive, with commuting now less of a priority, areas that offer more space and better affordability have experienced increasing demand from buyers.”

Scotland’s 10 towns and cities with the highest growth in average house price, 2020-21

^{Source: Bank of Scotland, 12 months to October}