Annual house price inflation fell in Scotland in September.

The house price index published by Communities and Local Government yesterday indicates that the figure fell from 13.1 per cent in August to 12.5 per cent in September.

Statistics also suggest that the average house price in September for Scotland was £163,359, which is below the average price for Wales (£168,405), England (£227,661) and Northern Ireland (£246,795).

The house price inflation rate for first-time buyers fell from 12 per cent in August to 11.8 per cent in September and there was a rise of 0.2 per cent in the price index between August and September in the properties purchased by such consumers.

Regarding the condition of the sector, spokesperson for the Royal Institute of Chartered Surveyors Ian Perry commented: "The housing market is seeing the awaited slowdown that many had been expecting, with modest falls reported across most UK regions.

Communities and Local Government sets UK policy on housing, local government and urban regeneration.