House prices in Argyll and Bute are on the up, jumping by 12 per cent in the past year – the second highest increase in Scotland, according to a new report.

Figures for September from Your Move/Acadata show the average house price in the area was £172,568 – compared with £158,421 12 months previously.

This contrasts with the Scottish figure, which stood at £175,070.

The September figure for Argyll was also up from August, although at a modest 3.4 per cent.

Only Inverclyde showed a higher annual rise than Argyll and Bute, at 12.2 per cent, although prices are a good deal lower in the Greenock area, with the average being £138,074.

Houses in neighbouring West Dunbartonshire averaged out at £119,725, down almost two per cent on the month but up by nearly eight per cent on the year – making the area the cheapest place in Scotland to buy a house.

Your Move/Acadata says the figures show the Scottish market is gradually picking up again, in stark contrast to England and Wales, where prices are languishing.

However, Christine Campbell, Your Move managing director in Scotland, said there was relatively little stock coming onto the market.

She added: “Many potential sellers are deciding to sit tight.”