News In Focus
Rising supply cools property value growth in capital
The rise in East Central Scottish residential property prices may be slowing, according to the latest figures from the Edinburgh Solicitors Property Centre (ESPC).
ESPC's quarterly house price survey for April-June, just released, reveals that the average house price in Edinburgh rose by 9.6% year-on-year to £227,760. Annual growth of between 10 and 20% was recorded in other areas of the Lothians. In most cases this growth brought house prices back in line with 2008 levels.
However with more homes coming onto the market throughout 2010, ESPC predicts house price inflation will cool in the months ahead.
The survey finds a great deal of variation across the market, with larger family homes enjoying the most significant rise in value, while one-bedroom flats remain largely static.
The number of homes sold in Edinburgh rose by over 30%, but sales remain 50% below pre-credit crunch levels.
David Marshall, business analyst with ESPC, said: “Demand from buyers edged upwards over the last three months and this has helped to push prices upwards during that period. Despite this, the supply of properties coming to the market has increased at a faster rate and this has meant the number of homes available for sale is much higher than at the start of the year.
“This, coupled with the prospect of job losses in the public sector, should exert a downward pressure on prices in the months ahead, meaning that the high levels of inflation we have seen recently will ease. Towards the end of 2010 we would expect prices to be in line with levels witnessed late last year.”