Edinburgh house prices soar at twice national average

For Sale signs  on Abercromby Place, as new figures show the average price of a city home has soared 10 per cent.
For Sale signs on Abercromby Place, as new figures show the average price of a city home has soared 10 per cent.
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AVERAGE home prices in the Capital have risen more than double the national average to £246,611, official statistics reveal.

The latest UK house price index had Edinburgh properties up 10.4 per cent on last year, compared to 3.9 per cent across Scotland to £146,354.

There were similar above national average rises in Midlothian - 8.2 per cent to £172,351, West Lothian - 5.8 per cent to £150,426 - and East Lothian - 4.4 per cent to £212,320.

David Marshall, of Warners Solicitors and Estate Agents, said: “It’s not surprising that Edinburgh is experiencing such high property price growth compared to much of the rest of Scotland.

“For the past 18 months conditions in the local market have strongly favoured sellers and the number of homes available on the market simply has not been sufficient to keep pace with demand.

“As a result, buyers have to pay higher premiums if they want to secure a home that they are interested in.”

Mr Marshall predicted a “more equitable balance” between supply and demand in 2018 to ease pressure on buyers.

He added: “Perhaps the bigger issue to address however is the severe lack of new homes being built to meet demand - with the city population expected to grow by around 21 percent in the next 22 years.”

The Capital has both the highest average prices in Scotland and also witnessed the largest year-on-year increase.

Prices in Scotland rose slightly slower than the UK as a whole, which recorded an increase of five per cent from August 2016 to an average price of £225,956.

Aberdeenshire had Scotland’s largest price drop in the same period as average prices fell 5.7 per cent to £188,876, followed by a 4.8 percent drop in Aberdeen to £167,903.

Across Scotland, the average price of all property types except detached properties increased in the year to August.

Flats had the largest rise, up 8.4 per cent to £108,772, while the average price of detached properties dropped 1.9 per cent to £240,241.

The average price for first-time buyers in August was £120,824, up 6.2 per cent compared to August 2016.

Scotland sales had the highest increase in the UK, with 10,473 in June, up 19.3 per cent from the previous year and rising by 26.2 per cent from May.

Elsewhere in the UK, sales dropped 11 percent in the year in England while Wales rose by 1.4 per cent and Northern Ireland by 5 per cent.

The Capital saw the second highest volume of sales after Glasgow, with 1,216 - up 11.7 per cent.

Charles Keegan, of Registers of Scotland, said: “Residential sales volumes have taken a boost - average prices in Scotland also continued their upward trend.”