Your Move has reported that house prices in Scotland grew strongly in February, rising £2,340 (1.4%) to reach almost a two-year high.

The average property in the country is now worth £173,862, the highest level since the surge in March 2015.

Prices have grown 3.3% in the last 12 months, compared to 3.1% in England and Wales.

Your Move said this is driven by strong performance in Scotland’s two biggest cities, Edinburgh and Glasgow, both up 8.4% annually. Prices are soaring in the two cities due to the lack of housing supply, partly caused by increased investment from overseas buyers as many look to secure affordable student housing.

Prices are also up 12.2% annually, after a 6.6% surge in February, in Stirling, one of five areas to reach a new peak in February, along with Angus (up 7.2% annually), the Shetland Islands (9.4%), South Lanarkshire (8.2%) and Na h-Eileanan Siar (17.4%).

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.”