News In Focus

Capital house prices dip again

5 October 2012

House prices in Edinburgh between June and September fell by 2.3% to an average of £211,704 against the same period last year, according the latest figures from ESPC. Total transactions were slightly down, at 2,013 compared with 2,038.

The quarterly figures continue to fluctuate in year-on-year performance: the previous quarter showed a 3.1% rise over the same period in 2011, but the early months of the year recorded a 6% fall – despite a rise in the volume of sales.

Across east central Scotland, 25.0% of properties sold in the last three months achieved home report valuation, up slightly from 21% last year. Earlier this year the proportion was down to 16%. On average, properties are currently selling for 4.2% below their home report valuation.

Outside the capital, average prices rose by 4.2% in East Lothian, but fell by 3.6% in Dunfermline, 7.3% in Midlothian and 13.0% in West Lothian.

David Marshall, business analyst with ESPC commented: “House prices in the capital continue to show some volatility due to lower sales volumes. However where we see sharper rises or falls, these tend to be offsetting similar market volatility in the opposite direction a year ago. This is evident in the average price of a one bedroom flat in Leith Walk or Easter Road, which jumped by 9% between 2010 and 2011 but dropped by 14.7% to £99,940 this year."

He added: “We are still seeing an imbalance with the number of properties available for sale continuing to exceed ‘normal’ market levels, leaving buyers again in a position of relative strength to negotiate a sale.”