ESPC House Price Report - November 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.
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."
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."
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."
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."
Got a question? Read our House Price Report FAQs.
Want to know about previous months and years? Read our historical house price data.