© The Herald
Originally published: 13.06.2006

House prices are continuing to rise strongly in Scotland, with government records showing a 7.6% rise in average prices in April compared to the same month last year.

The Department for Communities and Local Government figures showed Scotland's homes outperformed the rest of the UK, where prices rose by an average of just 5.1%.

Scotland remains the cheapest place to buy a home at £132,201, while London is the most expensive, with property in the UK capital costing an average of £278,257.

The average rise in prices for the whole of the UK was higher than the 3.3% year-on-year rise recorded in March.

However, experts suggested there was little sign of a property boom. Howard Archer, chief UK and European economist at economics group Global Insight, said: "The marked rise in house price inflation reported for April does not significantly undermine the recent evidence which has hinted that the recent mini-boom in the housing market could be faltering."

Meanwhile, the sites of the first houses to be built on Forestry Commission land were announced yesterday. The move comes in response to the demand for affordable accommodation in rural Scotland.

The National Forest Land Scheme (NFLS) gives communities the opportunity to buy or lease some of the commission's 1.6m acres of land, where they can provide increased public benefits. It also allows housing associations to buy sites for affordable housing. In addition the executive is currently considering the creation of crofts on commission land.

The first four housing projects under the NFLS will be at Kilmun near Dunoon, Dalavich on Loch Awe, Strontian on the shores of Loch Sunart and at Salen on Mull.

During a visit to Mull yesterday, Rhona Brankin, the Scottish forestry minister, said: "There is a recognised shortage of affordable housing in many rural areas as the demand for retirement or second homes has pushed prices beyond the means of many local people. I am pleased that through the NFLS we have the ability to make land available to housing organisations at a reduced rate so that they can increase the supply of affordable housing in rural areas where the demand is strongest."

Ms Brankin was also on the island because the first community-based purchase of land under the NFLS has been agreed, with the North West Mull Community Woodland Company. In March, the group, based around the village of Dervaig, near Tobermory, put in a bid to buy two plantations, amounting to almost 1750 acres of land.

Colin Morrison of the Woodland Company said: "Our plans range from generating better habitats and a greater diversity of tree species, to improving trails for walkers, cyclists and horse riders. "We will investigate the possibility of play and education areas for children, as well as the potential for smallholdings, woodland crofts and the provision of affordable housing."