The number of people looking to buy a house in Scotland fell again in August but house prices continued to rise due to lower supply levels, according to the Royal Institute of Chartered Surveyors (RICS).

Last month’s results showed house prices in Scotland continued to rise, but inquiries, sales and new instructions all dropped.

RICS say there has been a downturn in activity for several months, with August being the fourth consecutive month of negative readings with a net balance of minus 25 per cent of Scottish respondents recorded.

Around 32 per cent of respondents reported an increase in average house prices during August and prices are expected to be higher in a year’s time.

Senior economist Tarrant Parsons said: “ For the time being at least, the lack of stock on the market is still providing support to house prices.”

, which continue to rise, even if the pace of growth has cooled over recent months.”