The average price of a home in Scotland in February reached £173,862 – a rise of 3.3% on the previous year, new figures show.

Residential property prices north of the border grew strongly in February, rising £2,340, or by 1.4%, to reach a near two-year high, according to Your Move’s latest Scotland House Price Index.

Growth was driven by strong performance in Scotland’s two biggest cities, Edinburgh and Glasgow, both up 8.4% annually, owed largely to the widening supply-demand imbalance in the cities.

Five regions reached a new peak in February, including Na h-Eileanan Siar (+17.4% year-on-year), Stirling (+12.2%), the Shetland Islands (+9.4%), South Lanarkshire (+8.2%) and Angus (+7.2%).

First-time buyers continue to drive demand in Scotland, with prices for flats leading growth at 5.1% annually.

Christine Campbell, Your Move managing director in Scotland, said: “First-time buyers are continuing to drive the market in Scotland, but the window of opportunity opened by interest rate cuts last year may be narrowing. Tight supply coupled with their demand is pushing up prices across the country.”

Together, Edinburgh and Glasgow accounted for a quarter of all transactions in Scotland.

“While London remains sluggish, prices in the big beasts of the Scottish housing market, Edinburgh and Glasgow, are growing strongly,” said Alan Penman, business development manager for Walker Fraser Steele, one of Scotland’s oldest firms of chartered surveyors and part of the LSL group of companies,

 “That reflects strength in both high value and affordable areas across the country and bodes well for the market as it faces up to the uncertainties following the triggering of Article 50,” he added.