The Scottish housing market has continued its recovery streak as most areas showed a decent increase in quarterly house price, according to a report by Lloyds TSB Scotland.

The average price of a home, according to the latest Scottish House Price Monitor, rose to £160,074 in the three months ending 31 January 2010, representing a rise of 5.9% on the previous quarter.

Dundee saw the biggest house price rise over the past quarter at 16.3%, while Edinburgh coming in second, at an 11.4% increase, the south west seeing an 11.2% rise and the south east recording a 10.4% increase. House prices also saw a rise of 7.3% in Aberdeen and 8.4% in the north.

However, annual prices continued to fall in all areas. In Dundee, prices fell by 2%, while prices in Glasgow fell by 12%. Scottish house prices have now fallen by an average of 6.8% annually.

According to Professor Donald MacRae, chief economist at Lloyds Banking Group Scotland, “Business surveys point to an exit from recession in early 2010, despite five consecutive quarterly falls in output in the Scottish economy”.

"The level of mortgage availability including for first-time buyers has increased while the cost of borrowing remains low for many mortgage holders. The Scottish housing market is now into recovery", he added.