This is the latest press release from the ESPC with property figures for the last quarter of 2007. In 2008, the industry body expects Edinburgh price increases to slow to a rate of 3-5%, well below the 10-15% that property owners have seen in recent years. The average price of a house in Edinburgh is now £215,168. A single bedroom flat in Leith, now costs over £125,000.
The release is dated 9
January 2008.
Quote:
HOUSE
PRICE INFLATION REMAINS STRONG DESPITE COOLING IN CAPITAL MARKET
Latest
figures released today by ESPC reveal that the property market in
East Central Scotland continued to grow steadily in the last three
months of 2007. The average price of a property in Edinburgh now
stands at £215,168 following annual inflation of 9.3% in the
fourth quarter of 2007.
There
were signs that the market was starting to cool however, with the
number of properties sold in the Capital down 15% on the record
levels witnessed at the end of 2007. Annual inflation in the Capital
also dipped below 10% for the first time since the first quarter of
2006.
Commenting
on the results, Ron Smith, ESPC chief executive said: “The level of
growth we witnessed in the local property market in 2007 outstripped
projections, with double digit inflation recorded across most areas.
As we have been saying for some time, these levels of growth would
not be sustainable over the longer term, and we are now starting to
see inflation return to more moderate levels. Demand for property and
the local economy both remain strong however, and we expect to see
average growth in prices across East Central Scotland of between 3
and 5% over the coming 12 months.”
Within
Edinburgh much of the most significant growth was recorded for
smaller one-bedroom properties, with demand from first-time buyers
and investors continuing to fuel inflation. The average price of a
one-bedroom flat in Gorgie and Dalry now stands at £123,546
following an annual rise of almost 15%. A similar property in Leith
Walk or Easter Road now costs £125,187 following a year-on-year
increase of just over 10%.
There
was also further evidence of buyers’ willingness to look further
afield for an affordable way to get on the property ladder. In
Kirkcaldy for example, the average price of a property sold in the
last quarter of 2007 rose by some 26% compared to the same period in
2006 and now stands at £161,795. Dunfermline and Falkirk also
witnessed annual growth of over 15%, taking the average price in
these towns to £150,653 and £152,545 respectively.
Robin
Stimpson, ESPC chairman comments: “The housing market in East
Central Scotland has been particularly strong over the last two
years. In spite of this, property across the region remains
comparatively affordable to other areas of the UK, particularly south
of the Border, and we expect modest growth to continue over the
coming year”.
ENDS
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