Scotland proved the most popular destination for new homebuyers in 2006, with more buyers looking to move into the region than any other destination in the UK, SmartNewHomes reveals.

While many other areas across the UK, such as the West Midlands, continued to suffer from outward migration and falling house prices, Scotland emerged as the most popular destination with continued inward migration (recorded as 4.8%) driving up prices.

The average price of a new home in Scotland rose 13% in 2006, the highest annual price increase after London.

Previously ranked as the second most affordable place to buy a new home in 2005, Scotland has moved seven places up the league table, to make it the third most expensive place to buy a new home in 2006.

Greater London, at £439,075, and South East at £317,567 are the two most expensive places to buy a new home.

David Bexon, managing director of SmartNewHomes.com, said:
"Cities such as Edinburgh and Glasgow have spearheaded this growth and towns such as Stirling, now boast some of the most expensive new homes in Scotland."

"Prices in major Scottish towns are fast catching up with those found in London and detached properties are achieving a premium, in part fuelled by the number of professionals moving into the region to take up roles in the cities flourishing business districts."