Scotland top of house price chart

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Scotland and south-east England saw the biggest house price rises in 2007, a Halifax Estate Agents' survey suggests.

Eight of the top 10 towns recording the largest price increases during the year were from the two areas.

Montrose in Angus saw the strongest growth, with prices rising 39% on average. Winchester, Hampshire, was just behind with a 38% leap.

The average house price was more than £100,000 in all towns surveyed - half had an average higher than £200,000.

Employment and immigration

The Halifax said house price growth in Scotland and south-east England reflected a "robust employment market and record levels of net international migration".

Its report noted that employment in Scotland had risen by 125,000 during the last five years, while in 2006 immigration increased the population by 22,000.

Strong economic conditions, highlighted by high employment levels, have boosted housing demand and driven up prices Martin EllisHalifax Estate Agents

It added that property had been "relatively affordable in Scotland" which provided "a springboard for further significant house price growth".

Meanwhile, in south-east England, unemployment remained low - with 27 areas having unemployment rates below 1%.

Martin Ellis, chief economist for Halifax Estate Agents, said: "Strong economic conditions, highlighted by high employment levels, have boosted housing demand and driven up prices.

"Relatively good housing affordability in Scotland has also permitted strong price growth in several towns north of the border."

North-south divide

The report also found that almost half of British towns, 48%, had an average house price above £200,000 - five years ago this had been just 21%.

TOP FIVE HOUSE PRICE RISES 1. Montrose, Angus 39%2. Winchester, Hampshire 38% 3. Billericay, Essex 35%4. Peterhead, Aberdeenshire 33%5. Stourbridge, West Midlands 31%

The survey noted there were now no British towns with an average price below £100,000.

Southern towns and cities remained the most expensive places to live. London's Kensington and Chelsea topped the list, while Nelson, Lancashire, was the most affordable town, with the average property price below £110,000.

Ilkley, west Yorkshire, was the most expensive town outside southern England with an average price of £353,557.