RECORD LEVEL OF SALES FOR 2006
Residents in Edinburgh and the Lothians looking to earn some extra income in 2007 could do worse than to invest in a removal van. Record levels of property sales in 2006 mean that more people than ever before are moving home in the area, and all the signs are that this is likely to continue in the coming year.
2006 saw property price inflation in east central Scotland exceed many expectations after a slowdown in the market in 2005. The latest figures from Edinburgh Solicitors Property Centre (ESPC) show that, in Edinburgh, the average price of residential property rose annually by just over 11% in 2006 and now stands at £195,534 for the year.
Similar increases have also been witnessed in the Lothians as some buyers opt to look outwith the Capital for more affordable housing. In West Lothian for example, an annual increase in excess of 15% took the average price in the region to £156,502 in the last quarter of 2006. In East Lothian an annual increase of 15.5% through the last three months of the year took the average price in the area to £182,302.
Whilst the buoyancy in the market will be warmly received by many home owners, the news will understandably present concerns for those looking to get their first foot on the property ladder. ESPC remains committed to assisting first-time buyers. For those who are willing to show a degree of flexibility about the area and type of property they are looking for, a number of bargains still exist in and around the Capital.
In Edinburgh, more than one in ten properties sold through ESPC in 2006 went for less than £100,000, with just over a quarter selling for less than the current Stamp Duty threshold of £125,000. Indeed, towards the west of the City, the average price of property sold in 2006 is just £125,272 in spite of a 16.7% year-on-year rise in the area, the highest rise across Edinburgh.
Despite recent predictions from some quarters that the UK housing market is set for a decline, the evidence suggests that, in east central Scotland at least, strong growth of around 7% is likely to continue throughout the coming year.
Demand for property in Edinburgh and the Lothians reached unprecedented levels toward the end of last year. ESPC has achieved new records in terms of both the number and value of properties sold over the last six months, with over 6,200 properties selling for a total of more than £1.2bn in Edinburgh alone. At the same time, the supply of properties coming on to the market has remained consistent with what we have witnessed in previous years, meaning that at present demand for housing is far in excess of supply.
Population in the region is also rising markedly and at the same time the proportion of single person households is rising across the UK, meaning demand is only likely to be inflated further for the foreseeable future.
In spite of recent increases, the ratio of house prices to average earnings in east central Scotland remains well below that witnessed in many other areas of the UK. The property market in the area will thus be well placed to absorb any interest rate rises that may be forthcoming in 2007. Indeed, the record sales results witnessed at the end of 2006 were achieved despite an overall increase in interest rates of 0.5% since August.
All the indications therefore are that 2007 is likely to be another buoyant year for the property market, and another hectic year for removal men.
Issued by ESPC(UK)Ltd
For further information, please contact:
Ron Smith
tel 0131 624 8520 email marketing@espc.com