5 July 2007 09/07

AVERAGE PROPERTY PRICE IN EDINBURGH TOPS £225,000 AS RAPID GROWTH CONTINUES

Today's decision to increase interest rates is unlikely to have a significant adverse effect on property prices in east central Scotland according to latest figures released by ESPC.

The average property price in Edinburgh now stands at over £225,000 following an increase of over £27,000 in the last twelve months. Between April and June, properties in the Capital sold for an average of £227,912, an increase of over 13% on the same period in 2006.

The latest rises also marked the fifth consecutive quarter in which annual growth in the City had exceeded 10%, and comes in spite of four interest rate rises during that time.

Some of the most rapid growth was again found to be among smaller one and two bedroom properties, with demand from both first-time buyers and investors pushing prices up. The average price of a one-bedroom flat in Gorgie and Dalry for example now stands at £126,427 following an increase of 21.7%.

Rising prices force buyers to look further afield

There is also evidence that buyers are increasingly willing to be flexible about the areas in which they are looking to secure a home, with increasing demand pushing up prices rapidly in many of the traditionally more affordable areas in the City.

Homes in the Parkhead area of the City sold for an average of over £138,000 after a year-on-year increase of 22%, while in West Pilton a rise of over 31% took the average selling price in the area to £115,275.

Commenting on the results, David Marshall, ESPC business analyst said: "The levels of growth we are currently witnessing continue to exceed projections made at the turn of the year. At present, the supply of properties to the market in east central Scotland is simply not sufficient to satisfy demand for properties in the region."

"Looking forward, all of the key indicators in the market point towards further growth in coming months," continued David Marshall. "Properties are selling around 15% quicker than at this time last year, while the average premiums being achieved on properties marketed at offers over in Edinburgh have risen to over 28%. In spite of today's rise in interest rates, the market should thus remain robust, though the levels of growth may cool somewhat toward the end of the year."

Edinburgh prices affect surrounding areas

The strength of the market in Edinburgh has also had a knock-on effect in surrounding areas. In East Lothian, the average property price broke the £200,000 for the first time following an increase of 16.2% on 2006 levels, while in West Lothian a rise of over £60,000 in just over two years has taken the average price in the area to £188,640.

Growth in the Central region also continued apace, with Falkirk and Stirling recording annual rises of 23.1% and 14.7% respectively. Similarly in Fife, growth in both Dunfermline and Kirkcaldy was found to exceed 12%.

Robin Stimpson, ESPC chairman, comments: "The housing market in east central Scotland remains very strong at present. As we have been saying for some time, until such a time as the supply of properties to the market is able to meet demand, we will continue to see similar rises in the future."

Issued by ESPC(UK)Ltd

For further information, please contact:David Marshall

tel 0131 624 8515

5 July 2007 (L/BD&P/Press releases/2007/Q2 stats)

ESPC Statistics summary - Quarter 2 2007

City of Edinburgh
	Property Type	2007	2006	YOY % Change
Average Selling Price	All Properties	£227,912	£200,637	13.6%
Sales Volume	All Properties	3,267	3,450	-5.3%
Total Sales Value	All Properties	£744.6m	£692.0m	7.6%

City Centre	All Properties	£286,733	£239,340	19.8%
Suburbs	3 bedroom semi	£250,366	£219,993	13.8%
	4 bedroom detached	£393,761	£379,958	3.6%
Marchmont/Bruntsfield	2 bedroom flats	£269,953	£234,815	15.0%
Gorgie/Dalry	1 bedroom flats	£126,427	£103,903	21.7%
Leith Walk/Easter Road	1 bedroom flats	£128,526	£110,255	16.6%
Stockbridge/Comely Bank	2 bedroom flats	£259,397	£232,017	11.8%

Lothians
East Lothian	All Properties	£203,902	£175,484	16.2%
Midlothian	All Properties	£172,448	£174,290	-1.1%
West Lothian	All Properties	£188,640	£158,521	19.0%

Other Areas
Dunfermline	All Properties	£151,678	£134,365	12.9%
Falkirk	All Properties	£143,990	£117,014	23.1%
Kirkcaldy	All Properties	£155,013	£138,091	12.3%
Stirling	All Properties	£184,397	£160,832	14.7%