A group of solicitor firms, who account for around a quarter of the properties sold in the Edinburgh area, are hoping that a new cashback scheme aimed at helping first time buyers will stave off the worst of the credit and housing meltdown.
The KICKstart scheme is being run by the Edinburgh and Lothians Property Group (ELPG) - which includes Drummond Miller, Leslie Deans & Co, The Lints Partnership, Neilsons and
Warners. Each week, the group's property guide will showcase a range of fixed priced properties, offering 3% of the price back to the buyer on completion of the sale.
On a purchase of a typical £120,000 property, this would amount to £3,600; with a sale at £150,000, it represents £4,500.
"The weakness in the market currently is with sales of entry level properties. Property in Edinburgh is expensive and even before the credit crunch it was difficult for first time buyers to get their first foot on the property ladder," the ELPG said in a joint statement before the scheme's launch today.
"The KICKstart initiative, together with the recent announcement by the ESPC of a new 100% mortgage to the market, will give a considerable boost to the entry level sector. It will allow first time buyers access to funding to make their first purchase less of a financial burden and
it will release owners of entry level properties to move up the property ladder."
The group is optimistic that the scheme could have a chain reaction: "If properties in this sector start moving again it will help to get things moving again up all levels of the property ladder.
KICKstart comes at a time when the property slump appears to be gathering pace across the UK. The Bank of England said that mortgage approvals in April fell to their lowest levels on record, almost half of last year's total, yet high inflation levels mean it has limited room to drop interest rates.
Last week, the Nationwide reported house prices falling at their fastest levels yet with a drop of 4.4% across the UK.
However, Scotland seems to be avoiding the worst with, according to the Nationwide in its regional report last month, prices in Scotland up 6.3% year-on-year. Lloyds TSB reported Edinburgh prices up 12% year-on-year in its Scottish House Price Monitor last month.
The ELPG maintains that "the local property market is remaining resilient with prices remaining positive and activity still apparent."
However, while economists agree that house prices in Scotland may not drop as far as the rest of Britain it is not immune from the credit crunch. First time buyers may decide the safest way to save money is to watch events unfold from the sidelines.