ESPC House Price Report - November 2011
06 December 2011
- The average house price in Edinburgh in the three months to November was £219,501 - 0.6% higher than during the same period last year.
- There was a mixed picture for prices within the city with values of larger properties rising in most areas whilst prices of smaller properties were generally lower than they were a year ago.
- The average price of a one bedroom flat in Leith Walk and Easter Road is now £89,150, the lowest figure recorded since 2004.
- House prices in East Lothian and Midlothian were broadly unchanged on values recorded last year.
- The number of homes available for sale is still above seasonal norms meaning buyers remain in a strong position in negotiations.
Overview
Latest house price figures from ESPC - the largest property
marketing firm in East Central Scotland - reveal that the average
house price in Edinburgh during the three months to November stood
at £219,501 following an annual rise of 0.6%. Other areas also saw
very little change in price during the last year. In East Lothian a
0.2% fall took the average house price to £201,847 whilst a 1.7%
increase in Midlothian brought the average in the region to
£171,121.
Although there was very little change in the overall average in
most areas there were clear differences in trends within local
markets. Larger properties have seen values rise in most areas over
the last year, whilst the value of smaller homes is generally lower
than it was 12 months ago.
David Marshall, business analyst with ESPC explained: "Since the
credit crunch it's been demand at the lower end of the market
that's been hit hardest. The large deposits required to access
better mortgage rates remain a barrier for many first time buyers
and demand from buy to let investors is still relatively subdued.
As a result we've seen the value of smaller properties in most
areas decline throughout much of 2011. The demand for family homes
is comparatively strong meaning values of these properties have
inched upwards recently.
"Overall, the number of homes on the market is higher than you
would normally expect to see at this time of year and the number of
people who are in a position to buy is still below pre-credit
crunch levels meaning buyers remain in a position of relative
strength in the market. Roughly 80% of properties selling are being
secured for less than the Home Report valuation and sellers will
probably have to show a willingness to negotiate with buyers if
they are looking to secure a quick sale."
Edinburgh
The average house price in Edinburgh in the three months to
November was £219,501. This represented a decline of 0.6% from
£218,149 during the same period last year.
Although the overall average across the Capital remained largely
unchanged, there were significant shifts in prices at a more local
level. Larger family homes outwith the city centre saw prices rise.
The average price of a three bedroom semi-detached house in the
suburbs stands at £240,873 following an annual increase of 4.7%
whilst a 6.5% rise brought the average price paid for a four
bedroom detached property to £412,289.
Smaller properties in areas generally popular with first time
buyers saw prices fall however. In Dalry and Gorgie the average
selling price of a one bedroom flat fell 4.3% to £95,250.
Meanwhile, in Leith Walk and Easter Road a sharp fall of 15.5%
brought the average price of a one bedroom flat to just £89,150 -
the lowest level since early 2004.
David Marshall commented: "At the peak of the market the average
price of a one bedroom flat in an area like Leith or Dalry stood at
around £130,000 and it was almost impossible to find anything for
less than £100,000, even if the property was in need of
modernisation. The fall in prices since that time is obviously bad
news for those who bought at the peak of the market but the other
side of the equation is that it does present opportunities for many
first time buyers who had been priced out of the market by years of
high house price inflation."
Lothians
In East Lothian the average house price between September and
November was almost unchanged compared to a year ago. A 0.2% fall
took the average house price in the region to £201,847 - down from
£202,351 a year ago. In Midlothian a modest increase of 1.7% took
the average house price to £171,121.
West Lothian saw a sharper year-on-year increase of 6.2% taking
the average house price in the area from £146,090 in 2010 to
£155,165 this year. This increase was due to a rise in the
proportion of larger properties selling though with inflation
likely to drop back in coming months.
David Marshall explained: "The number of homes selling is still
below levels witnessed prior to the credit crunch which can lead to
some volatility in figures at a local level but broadly speaking
house prices across the Lothians have changed very little compared
to 12 months ago and this pattern is likely to continue as we head
into 2012."
Dunfermline
The average house price in Dunfermline between September and
November was £127,504 following a small annual decrease of
1.1%.
Commenting on these figures David Marshall said: "Although the
overall average house price in Dunfermline has been quite static
recently, it continues to be the case that when you compare prices
of specific property types, values are actually lower than they
were a year ago. For example, the average price of a one or two bed
flat in the town is £72,537 - 7% lower than a year ago - and the
average price of a three bedroom house over 5% lower than at this
time last year at just £122,873."
ESPC,
90a George Street,
Edinburgh,
EH2 3DF