The annual Bank of Scotland house price survey of Scottish towns and cities has revealed that Aberdeen has the fastest growing property prices.

House prices have risen by some 27 per cent during 2006 to £171,767, placing it in the bank's list of the UK's "best performing" towns and cities.

Edinburgh is the most expensive place in Scotland to buy a home – and the only place in Scotland with an average house price of more than £200,000.

"The north east of Scotland has seen firm house price growth in 2006, led by Aberdeen, which has benefited from a strong local economy, especially in the energy sector," said Tim Crawford, group economist at the Bank of Scotland.

"There remains a real gap between the prices of the most and least expensive towns in Scotland. Edinburgh is the only city in Scotland with an average house price above £200,000, while Lochgelly is the only town with an average price beneath £100,00."

Many people find that one way to increase the value of their home is to make improvements, such as installing new doors and windows.

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Author:  Joanne McCabe