House price inflation in Scotland slowed during May this year, with the inflation rate dropping from 17.8 per cent in April 2005 to 15.5 per cent in May 2007.

A new statistical release from Communities and Local Government shows that the mix-adjusted average house price in Scotland this May was £157,974.

UK house prices rose by 10.9 per cent over the year to May 2007, down slightly from 11.3 per cent in April this year, with the annual house price inflation for the three months to May at 11 per cent nationwide.

Average prices for flats rose most steeply (1.8 per cent), followed by terraced houses (0.9 per cent), semi-detached dwellings (0.6 per cent), detached properties (0.3 per cent) and bungalows (0.1 per cent).

All but four regions of the UK witnessed falls in house price inflation during May 2007, with the highest inflation rate in London (14.5 per cent).

The May 2007 house price index suggests that 11.2 per cent of residential property was purchased by first-time buyers in May 2007, with an average price paid of £162,055 across the UK.

Commenting on the report, David Stubbs, senior economist at the Royal Institution of Chartered Surveyors, predicted: "House prices should show a further gradual slowing over the coming months but interest rate increases have produced a rapid deterioration in affordability and the prospect of six per cent interest rates by the end of the year will dampen confidence and activity further."