House prices in Scotland are predicted to increase faster over the next 12 months than anywhere else in the British Isles, it has been suggested.

New research published by industry website PropertyFinder.com suggests that the average increase across the UK is set to be lower than in recent years at around five per cent.

However, in Scotland prices are predicted to rise at more than double this rate, at 11.3 per cent.

Warren Bright, PropertyFinder.com chief executive, remarks: "The housing market is undoubtedly slowing.

"The May rate rise has had an immediate impact on homebuyer confidence and fears of more to come are dampening expectations for house prices."

But he added that some regions, including Scotland, continue to "power ahead" as a result of local market behaviour.

Although the Bank of England elected to freeze the interest base rate at 5.5 per cent this month, PropertyFinder.com has suggested that since inflation is easing back the question of a further rise should be "when rather than if".