House prices in Scotland are continuing to grow ahead of the rest of the country but mortgage lending in the UK has fallen to its lowest level for more than 30 years, according to figures released yesterday.

The value of properties north of the border rose 9.3% in the year to the end of March, compared with an increase of only 5.2% across the UK.

The figures, compiled by Communities and Local Government, were released as the Council of Mortgage Lenders warned the number of loans for house purchases dropped to 142,300 between January and March. It compared with 237,600 in the first quarter of last year and was its lowest level since the first quarter of 1975.

Remortgages accounted for 44% of lending, the highest share in three years, as borrowers sought new loans as their two or three-year fixed-rate mortgages ended.

Kennedy Foster, policy consultant for the Council of Mortgage Lenders in Scotland, said: "Some lenders are having to ration the money they have and are withdrawing mortgage products effectively because of a shortage of funds. Some lenders have almost completely pulled out of the market.

"A lot of customers will be coming out of fixed-rate mortgages and if people have had an existing mortgage and paid it for some time they are probably deemed a better risk by a lender, so in some respects it is easier to remortgage than to take out a new mortgage."

He added the Bank of England's £50bn special liquidity scheme was expected to help improve the situation, but added it would "take some time" for the impact to be felt.

The average house in Scotland costs £163,687, cheaper than the rest of the UK.