Latest figures released today by Edinburgh Solicitors Property Centre (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".
