Property prices 'rising by almost £5,500 per month' in Edinburgh

Property prices in four parts of Edinburgh are rising at a rate of almost £5,500 per month, according to new research.

Three-bedroom houses in Corstorphine, Clermiston, South Gyle and East Craigs went for an average of £319,956 in the June-August period - up 25.2% on the same three months in 2016.

That represents an increase in value of £64,434 over the year - the equivalent of £5,369.50 each month.

ESPC has also reported year-on-year increases in the number of homes in Edinburgh, the Lothians and Fife being brought to market and the number sold.

However, with 88.4% of properties being marketed as ‘offers over’, with an average of 9.9% over the asking price, and with the median time to sell between June and August 2017 being only 15 days, the Edinburgh market is still proving difficult for buyers to secure a new home.

Sales increase

The average selling price of properties in east central Scotland increased by 7.4% to £241,075 between June and August 2017. The Edinburgh rise was 6.4% to £257,848.

Two-bedroom flats in the New Town and the West End also saw big increases in year-on-year selling prices (+22.1% to £385,634), as did  two-bedroom flats in Portobello  and Joppa (+20.5% to £221,167). 

The average selling price of property in West Lothian went up by 28.5% to £195,587 compared to the same period last year. ESPC said this appears to have been driven by a cluster of sales of high-end properties in the Linlithgow area.

But it is one and two-bedroom flats in Leith that have proved to be the most popular type of property to sell over the last three months, and this demand is driving up average selling prices in the area. 

One-bedroom flats in Leith Walk, Easter Road and Pilrig are reported to be achieving the highest percentage of home-report valuation (112.3%) in the region. 

Most affordable

The most affordable properties in Edinburgh are one-bedroom flats in Gorgie. This area is becoming increasingly popular with first-time buyers, with one-bedroom flats in this area showing a 20.3% year-on-year increase in average selling prices to £137,034.

ESPC’s business analyst Maria Botha-Lopez said: “The Leith area is typically popular with first-time buyers, and due to a shortage of housing stock, one-bedroom flats are selling quickly and over the home report valuation. 

"But with a small year-on-year increase of 1.8% in the number of homes being brought to market, and a 5.9% increase in the number of properties sold, this could be an indication that we are seeing a reversal in the downward trend of decreasing numbers of properties listed for sale and being sold.

“As more properties are being brought to market, this can only be a good thing for buyers and potential sellers alike. 

"The recent stalemate in the housing market is mostly due to potential sellers not seeing suitable properties to move to coming on the market. So hopefully this modest increase in new listings continues.”

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