House prices on the up as more buyers enter market
An increase in buyers puts demand and supply on an even keel. Picture: Ian Georgeson
HOUSE prices are on the rise across the Capital as more buyers are tempted into the market.
The ESPC’s quarterly House Price Report shows that more than 1300 properties changed hands over the summer – with two-thirds smashing their asking price.
According to the figures, the average price for a city centre home has risen 11.3 per cent in the last 12 months, from £238,303 to £265,201.
Two-bedroom flats in some of the Capital’s most sought-after residential areas have also seen a mini boom.
In Marchmont and Bruntsfield, prices have risen by 6.8 per cent from £259,495 to £277,235, while in Stockbridge and Comely Bank they have soared from £242,223 to £262,966 – an increase of 8.6 per cent.
Analysts believe the property market across Edinburgh has become “healthier and balanced” with demand and supply now at roughly equal levels, which should slow the speed of price rises.
David Marshall, the ESPC’s business development manager, said: “With market activity having improved over the last year, we are continuing to see more sellers being tempted back.
“The number of homes coming on to the market between June and August was up by 19 per cent on the same period a year ago.
“This means that while earlier in the year demand was rising much more quickly than supply, there is a healthier balance there now and this should help to ensure that house price inflation does not increase sharply as we move forward.”
For Edinburgh as a whole, prices were up 3.4 per cent between June and August compared with last year, from an average of £219,313 to £226,748.
East Lothian also saw bumper rises, with an average 6.8 per cent increase from £209,544 to £223,824.
Properties in Midlothian went up in price by an average of 2.3 per cent from £169,101 to £172,953, however, there was a slump in West Lothian.
Prices there bucked the trend by falling by 8.5 per cent on average from £182,963 to £167,476.
In March, the Evening News told how two identical houses seven miles apart in West Lothian – in Winchburgh and Linlithgow – had a price difference of £82,000.
Adam Laurie, the property manager at Whitburn-based estate agent Sneddon Morrison, said there was some evidence to suggest gaps such as these were starting to even out.
But he added: “The value of a property depends largely on where it is in the area.
“There are some areas in West Lothian where we’ve had prices see a vast increase, and others were they are depressing.”
He also pointed out that government figures suggested property prices had actually risen by £15,000 in the spring.
“The figures indicate that prices are stable,” Mr Laurie added.
“We’ve had slight decreases here and there, but, overall, the market in West Lothian is quite healthy.”