Edinburgh house prices increased more than Scotland average in August, figures reveal
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The rise contributes to the longer-term trend, which has seen property prices in the area grow by 8.9 per cent over the last year. The average Edinburgh house price in August was £337,506, Land Registry figures show – a 1.4 per cent increase on July.
Over the month, the picture was different to that across Scotland, where prices increased 0.2 per cent, and Edinburgh was above the 0.9 per cent rise for the UK as a whole. Meanwhile, over the last year, the average sale price of property in Edinburgh rose by £28,000 – putting the area 27th among Scotland’s 32 local authorities with price data for annual growth.
The highest annual growth in Scotland was in Na h-Eileanan Siar, where property prices increased on average by 27.7 per cent, to £166,000. At the other end of the scale, properties in Aberdeen gained 0.7 per cent in value, giving an average price of £150,000.
An imbalance between supply and demand for properties saw house prices climb across the UK throughout the pandemic. But experts say expectations have changed significantly in recent weeks amid mortgage rate rises, with the likelihood of a dampening effect on house price growth.
According to figures from Moneyfacts.co.uk On Wednesday, the average two-year fixed-rate mortgage on the market has a rate of 6.52 per cent and the average five-year fix is at 6.36 per cent. There are around 900 fewer mortgage products available than there were on the day of the mini-budget in September.
Chris Druce, senior research analyst at Knight Frank, said: “Current activity in the housing market is being shaped by mortgage status. Those that can are pushing on and securing deals ahead of further increases, while others have paused plans to digest events. With affordability set to be a growing barrier for many homebuyers in the coming months, we forecast house price growth will slow from here, with price falls in 2023.”
First-time buyers in Edinburgh spent an average of £268,000 on their property – £21,000 more than a year ago, and £72,000 more than in August 2017. By comparison, former owner-occupiers paid £416,000 on average in August – 54.8 per cent more than first-time buyersOwners of terraced houses saw the biggest rise in property prices in Edinburgh in August – they increased 1.5 per cent, to £387,072 on average. Over the last year, prices rose by 13.2 per cent.
Among other types of property
- Detached: up 1.1 per cent monthly; up 13.2 per cent annually; £777,419 average.
- Semi-detached: up 1.1 per cent monthly; up 11.7 per cent annually; £478,940 average.
- Flats: up 1.5 per cent monthly; up 6.9 per cent annually; £253,461 average
How do property prices in Edinburgh compare?
Buyers paid more for properties in Edinburgh than anywhere else in Scotland in August. The average price paid would buy 2.6 homes in East Ayrshire (£129,000), at the other end of the scale.The highest property prices across the UK were in Kensington and Chelsea. Across Scotland, property prices are higher than those across the UK, where the average cost £296,000.