Edinburgh house price analysis: Two-bedroom flats
New house price research by Edinburgh Solicitors Property Centre (ESPC) reveals that the average price of a two-bedroom flat in Edinburgh is lower than it was a year ago in more than 75% of the city’s districts. In 50 of the 65 districts studied the average price of a two-bedroom flat sold through the first nine months of 2011 was lower than it was during the same period last year, with just 15 districts recording an increase.
Commenting on the figures David Marshall, business analyst with ESPC said: "The results highlight the fact that looking at broad average house price figures can really mask regional trends, even within a single city. Overall the average price of a two-bedroom flat in Edinburgh stands at £174,246 - down 4.6% from £182,580 last year. There are some districts where prices have fallen more sharply than this however and there are also a handful of districts where prices are still inching upwards.
"In most cases, where falls in price were recorded this year these offset rises the previous year. Of the ten districts recording the sharpest falls in 2011, all but one had seen prices increase between 2009 and 2010. Similarly, four of the five districts recording the fastest increases this year had seen prices fall the previous year.
"Overall, 15 districts saw the price of a two-bedroom flat fall in each of the last two years. Generally speaking these districts tend to be associated with more affordable properties. The lower end of the market has seen a sharper fall in demand since the onset of the credit crunch due to the more pronounced effect of restrictions in mortgage lending on potential buyers in these. The result is a more consistent decrease in prices. In Gilmerton, for example, where the average price of a two-bedroom flat is well below the citywide average at just £103,144, a 7.3% drop in price last year was followed by a 3.6% drop this year.
"Conversely it is the middle to upper end of the market that has seen prices rise more consistently. Seven districts saw the average price of a two-bedroom flat rise both this year and last and these include more affluent areas of the city such as Morningside and Merchiston.
"Looking ahead we're likely to see a continuation of these trends as we head into 2012. Prices will be lower than they were a year ago in most areas, with those in traditionally fashionable areas of the city faring rather better than the market average."