ESPC House Price Report January 2014

property for sale edinburgh

Summary

  • In the three months to January 2014 the number of homes sold across Edinburgh, the Lothians and Fife rose by 59% annually.
  • Sales of smaller properties saw the sharpest increase. The number of one bedroom flats sold in the three months to January rose by 75% year-on-year.
  • The average house price in Edinburgh rose by 3.8% annually to £209,198.
  • Prices in East Lothian and West Lothian declined by 6.7% and 11.6% respectively, offsetting sharp rises at the start of 2013.
  • In Edinburgh, properties sold during the last three months achieved an average of 97.9% of their Home Report valuation – up from 94.3% a year ago.

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Full Report

Latest figures released by ESPC show that the number of homes selling across Edinburgh, the Lothian's and Fife has continued to rise sharply. During the three months to January, the number of residential sales recorded by ESPC rose by 59% annually.

The sharpest increase in activity was observed towards the lower end of the property ladder with sales of one bedroom flats rising by just over 75% annually. The market for smaller properties had been most significantly affected in the wake of the ‘credit crunch’ and this upturn reflects a rise in activity among first time buyers and buy-to-let investors.

Across Edinburgh the average house price increased by 3.8% annually from £202,275 to £209,918. East Lothian and West Lothian saw house prices fall, but in both cases the declines offset sharp rises a year ago. In East Lothian a 6.7% annual decline followed a 9.2% rise last year. The 11.6% fall in West Lothian came on the back of a 29% annual rise the previous year.

David Marshall, business analyst with ESPC commented:

"Buyer activity has risen sharply over the last 18 months, and it’s encouraging to see such growth in the number of one bedroom homes selling as it was this end of the market that was hit hardest by the economic downturn. You can still see some volatility in prices at a local level but in most cases sharper rises this year are offsetting falls a year ago and vice versa.

"The last few months have seen a notable improvement in seller activity, with the number of homes being brought to the market for sale during the last three months up by 30% annually. As we move forward this growth in supply will help to moderate house price inflation."

With activity in the local property market on the rise, sellers are now enjoying greater success in negotiations on price. Between November 2013 and January 2014, properties sold in Edinburgh achieved an average of 97.9% of their Home Report valuation. That marks an increase from an average of 94.3% a year ago.

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