The housing market in Scotland has showed signs of slowing down, with a drop in sales being recorded.

The official body that tracks all house purchases in the country, Registers of Scotland, said there had been a 16% drop in sales between the end of 2006 and 2007.

This compares with a 40% drop in England and Wales over a similar period.

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Some experts have warned that the situation in Scotland is likely to get worse as the mortgage squeeze becomes a factor.

They added that there was still a big demand for mortgages, but banks were less willing to lend as freely as they have done in the past.

House prices in Scotland remain static, with the average sale price down by 1% in the first quarter.

The figures show almost 15,000 houses being sold in December 2006. However, that number fell to just over 12,500 for the same month in 2007.

(NS/JM)