However on an annual basis Scottish house prices have fallen by 2.9%.
The number of transactions in Q3 increased 8% from the previous quarter however compared to the same quarter a year ago, the number of transactions was 5% down.
Scottish house purchases in the first nine months of 2011 were 9% less than in the same period of 2010.
The number of transactions in September 2011 was 5% down on the previous year.
Donald MacRae, chief economist at Lloyds TSB Scotland, said: “Average house prices are now 90% of their peak of three and a quarter years ago.
“Consumer confidence remains low due to high levels of retail price inflation in excess of increases in earnings squeezing disposable income.
“The Scottish housing market did recover from the depressed levels at the beginning of the year but the overall number of sales remains at less than half of pre-recession levels.
“A faster recovery awaits a resurgence of both business and consumer confidence.”
