Edinburgh is top performing city in Scotland over the past decade: UK Property Shop News

Edinburgh has delivered the biggest rise in property prices per square metre in Scotland over the past ten years, according to new research from Bank of Scotland, with a 170% increase from £759 per square metre (psm) in Q1 1996 to £2,052 psm in Q1 2006. Across the UK, Truro has delivered the biggest rise in property prices with an increase of 262%.

The most expensive city in Scotland is Edinburgh with an average psm of £2,052, while the most expensive cities in the UK are London (£3,582 psm), Oxford (£2,741 psm) and St Albans (£2,716 psm). Edinburgh ranks amongst the ten most expensive cities in the UK on a psm basis.

Dundee is the most affordable city in Scotland at £1,285 psm, while Armagh is the most affordable city in the UK; there the average price is £1,009 psm just over one-third of the price in London.

The gap between Edinburgh and Glasgow has widened over the past decade. In 1996, the price psm in Edinburgh was 22% higher than in Glasgow. In 2006 house prices in Edinburgh were 46% higher than in Glasgow, although the gap has held steady over the past five years. The gap between prices in London and Edinburgh has widened substantially more over the last 10 years. In 1996, the price per square metre in London was 34% higher than in Edinburgh. In 2006 house prices in London were 75% higher than in Edinburgh.

Commenting, Tim Crawford Group Economist Bank of Scotland, said: "House price per square metre is a useful measure for house price comparison because it helps to adjust for differences in the size and type of properties between locations. This is a helpful descriptor to be used alongside other more established house price comparators. The strength in house prices per square metre in Scottish cities over the past decade, particularly Edinburgh, highlights that many Scottish home buyers are attracted to the conveniences of city living, like shopping, transport links and easy commuting. Prices remain highest by a large margin in Edinburgh and on a square metre basis it is one of the ten most expensive cities in the UK."

Price movements

House prices in Scotland's cities have at least doubled per square metre over the past decade - Edinburgh (170%), Inverness (135%), Dundee (134%), Glasgow (126%), Stirling (122%) and Aberdeen (104%).

Over the past five years house price growth per square metre in Inverness (132%) and Dundee (122%) have substantially outperformed Edinburgh (89%) and Glasgow (89%).

Prices have at least tripled in a quarter (15) of the UK cities surveyed and at least doubled in all 62 cities since 1996. The majority of the cities recording the biggest increases are in southern England but Salford and Newcastle also feature in the top 10. Brighton (260%), Salford (255%), London (252%) and Bath (236%) follow Truro in the top five.

Smaller cities have tended to be the best performers. Eight of the ten cities recording the largest increase in psm across the UK over the past ten years have an average population of less than 250,000.

Scottish cities dominate the list of cities across the UK experiencing the smallest increases in house prices on a psm basis during the past decade with three of the bottom five cities: Aberdeen (104%), Stirling (122%) and Glasgow (126%). Southampton (132%) and Preston (133%) are the other cities in the bottom five.

Prices per square metre

House prices per square metre in Edinburgh, at £2,052 psm, are 60% higher than in Dundee (£1,285) and 46% higher than in Glasgow (£1,405). They are 33% higher than in Aberdeen (£1,546).

In 2006 twelve UK cities have an average psm above £2,000, including Edinburgh (£2,052). In 1996 only two cities had an average psm of above £1,000 - London and St Albans. Twenty seven cities have an average psm beneath £1,500 in 2006.

The least expensive UK cities after Armagh in 2006 are Londonderry (£1,133 psm), Lisburn (£1,215 psm), Carlisle (£1,217 psm) and Newry (£1,230).

The average house in the UK has an area of 103.8 square metres. To buy a house of this size in Edinburgh would cost £213,029, while it would cost £145,897 in Glasgow and £133,366 in Dundee. To buy a house of this size in London would cost £371,893, while it would cost £104,738 in Armagh, the least expensive city in the UK.

Most significant changes in rankings by price per square metre since 1996

Truro has climbed the most places over the past ten years across the UK, from a ranking of 45th in 1996 to 17th in 2006, followed by Norwich (38h to 18th), Newcastle (47th to 28th), Salford (60th to 41st) and Lancaster (51st to 35th).

Stirling has fallen the most in the rankings since 1996, dropping from 16th to 46th. Glasgow (23rd to 50th) and Dundee (34th to 56th) were the other two cities to experience significant downward movement in the rankings.