Spring Bounce in Property Market as Edinburgh Records 16% Rise in House Prices
Latest figures released today by ESPC reveal the property market in east central Scotland shows no signs of slowing down. In the first three months of 2007, prices in Edinburgh rose by over 16% compared to the same period in 2006, taking the average price in the Capital to £207,669.
The latest increase means that in the last ten years, property prices in Edinburgh have more than trebled from an average of just £68,195 in the first-quarter of 1997 to their current level.
Commenting on the results, Ron Smith, ESPC chief executive said: "The level of growth we have witnessed in east central Scotland, and particularly in Edinburgh, has been remarkable. In spite of three interest rate rises within the last year, the City has now reported annual growth in excess of 10% in four consecutive quarters."
The figures reveal that much of this growth was focused on smaller, typical first-time buyer properties. For example the average price of a one-bedroom flat in the Capital rose by over 20% year-on-year to £137,031 in the first three months of 2007. In contrast, the average price of a three or four bedroom villa rose by a more modest 4.1% over the same period.
"Over the last twelve months demand for property in Edinburgh has consistently outstripped supply," continued Mr Smith, "and this has proven to be particularly true in the case of smaller flats. These properties are of course attractive to first-time buyers looking for an affordable way to get a foot on the property ladder, and the consistently high levels of growth we have seen in the market recently have also made them of great interest to investors.
"Naturally this increase in demand pushes prices up which regrettably is likely to make things more difficult for first-time buyers in the future. With that said, there are still a number of affordable homes available in spite of recent rises. Almost one in five homes sold in Edinburgh so far this year went for less than the Stamp Duty threshold of £125,000, so there are certainly opportunities out there, particularly for those who are willing to be flexible on the areas they are looking."
This point was illustrated by a table of the most affordable districts in Edinburgh which showed the average price of a property in Sighthill, the City's most affordable district, was just £115,008 in spite of a 20% rise over the last year.
Outwith Edinburgh, the ESPC figures showed a similar pattern of growth across the rest of the Lothians. In West Lothian for example, a rise of 13.8% took the average price in the area to £165,169, while in East Lothian the average selling price of a property now stands at £186,130 following an increase of 7.5%.
Some of the fastest growth in east central Scotland however was found in the Dunfermline area, where an annual increase of almost 27% took the average price of property in the area through the £150,000 barrier.
Robin Stimpson, ESPC chairman, comments: "These results show that the property market continues to remain very strong. While we would anticipate an increase in the supply of properties to the market coupled with the prospect of further interest rate rises will result in a slight cooling in the levels of house price inflation in coming months, it is likely we will see similar growth continue throughout 2007."
Issued by ESPC(UK) Ltd
For further information, please contact:
Ron Smith
tel 0131 624 8520 email marketing@espc.com