• The average house price in Edinburgh in the first quarter of 2013 stood at £193,443 – down 0.9% annually.
  • Smaller properties in the Capital typically saw greater decreases in value.
  • East Lothian saw a sharp increase in the average house price, but this was driven by a rise in the proportion of larger properties selling in the area.
  • 18.4% of properties sold across East Central Scotland achieved their Home Report valuation – up from 16.0% a year ago.
  • On average, buyers paid 6.1% below the Home Report valuation figure to secure a property during the first three months of 2013.

The average house price in Edinburgh during the first three months of 2013 stood at £193,443. This marked a decrease of 0.9% from the figure of £195,221 a year ago.

As has been the case for much of the last two years, smaller properties within the Capital typically saw larger decreases in value whilst the average price of larger, family homes showed slight growth. In Gorgie and Dalry, for example, the average price of a one bedroom flat fell by 8.7% annually from £95,033 to £86,737. By contrast, the average price of a four bedroom detached property in the Capital inched up by 0.7% annually to £374,254.

David Marshall, business analyst with ESPC, explained: "We’ve seen an upturn in activity from first time buyers and buy-to-let investors recently, but in most cases these buyers are seeking to use market conditions to their advantage to negotiate sales below the Home Report valuation. As a result, while the number of smaller properties selling has increased, the average price they are achieving has come down."

In East Lothian the average house price rose sharply with a 12.1% increase bringing the average house price to £215,763. This increase was driven by a rise in the proportion of larger properties selling in the area. Houses with four or more bedrooms accounted for 31.2% of sales in the area during the last three months – up from 25.2% during the first quarter of 2012.

David Marshall commented: "You tend to see a bit of volatility in house prices in outlying areas as smaller sales volumes make average house price figures more susceptible to changes in the mix of properties selling. On this occasion the average price in East Lothian has risen by 12%, whilst the average house price in Dunfermline has come down by a similar amount. In both cases these reflect short term changes in the mix of properties selling and are not reflective of long term trends.

"Although buyer activity has picked up over the last 12 months, conditions continue to favour those who are in a position to buy. Just over 80% of properties sold between January and March were bought for less than their Home Report valuation – with buyers paying an average of 6.1% below the valuation figure to secure their purchase."

View house price table

Got a question? Read our House Price Report FAQs.

Want to know about previous months and years? Read our historical house price data.