However, affordability of property is at a low. In the region of six times the annual pay of a single full-time worker. Demand for local authority City of Edinburgh housing is high, around 139 bids for every property available is received. 2 bedroom local authority City of Edinburgh properties are particularly in demand.

Unemployment has almost doubled between the start of 2008 and the end of 2009 and there is historically low level of vacancies advertised.

It is unlikely that there will be an improvement in affordability of residential property in the city. There is a fundamental lack of supply of housing stock. What will affect the housing market in the coming year is the level of income growth, the unemployment rate and the levels of bank lending. Demand for property in Edinburgh is there, as demonstrated by the pressures on social housing, it is the purchasing power of that demand that will affect the housing market.

To read the Report in full www.edinburgh.gov.uk/housing marketmonitoringreport

Source: www.edinburgh.gov.uk

Extract from ESPC House Price Report – Q4 2009

Overall trend of incremental improvement in the housing market continues.

An increase in the proportion of larger properties selling helps fuel a 12.8% annual rise in the average house price in Edinburgh. Rate of increase also higher as comparison is against market lows recorded during Q4 2008

Average house price in Edinburgh increased annually during each of the last five months of 2009.

Over 1,300 property sales were recorded in Edinburgh during the last three months of 2009 – an increase of 57% on the same period in 2008.

45% of properties sold at Fixed Price achieved the asking price during Q4 2009 compared with 26% in Q4 2008.

Prices during 2009 were supported by low interest rates and a shortage of supply of homes to the market 2010 expected to see home values remain flat, whilst the number of homes selling will increase compared to 2009.

David Marshall business analyst with ESPC concluded: “On one hand, we are likely to see a continuation of increasing demand from buyers as lending restrictions are eased somewhat and confidence continues to return to the market. Offsetting this however is the prospect of a rise in unemployment during 2010 coupled with the likelihood of an increase in interest rates over the medium term. There will be some fluctuation from month-to-month, but broadly speaking the outlook is that homes values will be broadly unchanged over the next 12 months as compared to 2009 levels.” To read full report visit www.espc.com

Source: www.espc.com

The rise in prices was fuelled by a continued excess of demand from buyers over supply of properties to the market. Although new instructions from sellers rose for the sixth consecutive month, the rate of increase continued to trail behind the increase in new enquiries from buyers. Expectations for future price growth also remained positive. A net balance of 28% of surveyors expected prices to rise rather than fall over the next three months.

David Marshall, business analyst with ESPC, commented: “The results of the most recent survey from RICS are in line with recent trends. Although activity is picking up across the board there continues to be an excess of demand over supply and this has resulted in house prices inching upwards in recent months. As we move into the new year we are likely to see a further increase in activity while prices remain broadly unchanged on recent levels.”

Source: www.espc.com

Source: www.bbc.co.uk/news

Much of the most dramatic increases have been witnessed in rural areas, something that may be a direct result of buyers being forced out of cities by urban prices. Over the past year the two towns that have witnessed the largest increases have been Galashiels in the Borders, and Johnstone in Renfrewshire, both of which experienced a 30% annual rise.

For more information or advice regarding Scotland’s property market please contact:

Elspeth.Rae@brucerae.co.uk

This has led to the average price of a property in the capital exceeding the £220,000 mark. Professor Donald MacRae, the banks chief economist, commented, ‘Average prices are some three-quarters of the UK level and continue to be propelled by a combination of favourable economic background and demand for houses exceeding the supply.’ However, he also warned that recent interest rate rises could have a cooling effect on the market, something that may become evident in the next quarter.

Average house prices in Scotland have now risen steadily for 75 successive months.

For more information or advice regarding Edinburgh’s property market please contact:

Elspeth.Rae@brucerae.co.uk

All information taken from The Guardian.

Despite the fact there has been three interest rate rises within the last year, this has now been the fourth consecutive quarter that there has been annual growth of more than 10%. Figures reveal that much of this has been focused on properties more suited to first-time buyers, such as one-bedroom flats in affordable areas. In the first three months of 2007 the average price of a one bedroom Edinburgh property rose by over 20% to £137,031. In this same period the average price of a three or four bedroom dwelling rose by a more conservative 4.1%.

Ron Smith, ESPC chief executive, commented, “Over the last twelve months demand for property in Edinburgh has consistently outstripped supply and this has proven to be particularly true in the case of smaller flats. These properties are of course attractive to first-time buyers looking for an affordable way to get a foot on the property ladder, and the consistently high levels of growth we have seen in the market recently have also made them of great interest to investors.’

The fact that employment in Edinburgh is growing at its fastest rate for past 3 years, and that investors from UK and overseas continue to support demand for property in the city, have both contributed to the continued buoyancy in the market. Another factor that has had an impact is the ‘bonus effect’. Although usually associated with London, the strong performance of financial employers in the Capital has resulted in a significant number of workers who are investing their substantial financial rewards into keeping themselves on top of the city’s housing market.

Although the prospect of further interest rate increases and an increase of properties on the market may slow down house price inflation in the coming months, it is likely that we see similar growth in Edinburgh throughout 2007 to what we saw in the previous year.

For more information please contact :

Elspeth.Rae@brucerae.co.uk

Faced with low supply of good quality, traditional family houses in the central belt, many have turned their thoughts to building their own. However, with the supply of acres falling to 36,500 during the first nine months of 2006 compared with 37,000 in the same period the previous year, good land is almost as hard to come by.

Recent figures by Edinburgh Solicitors’ Property Centre (ESPC) show that in the first quarter of 2007 prices across the Lothians have also risen considerably. In East Lothian for example a rise of 7.5% took the average price in the area to £186,130, while in West Lothian the average selling price of a property now stands at £165,130 following an even greater increase of 13.8%. Some of the fastest growth observed in the east central Scotland belt was observed in Dunfermline where, following an annual increase of 27%, the average price of a property is now exceeding the £150,000 mark.

For more information please contact:

Elspeth.Rae@brucerae.co.uk

As was the case in previous reports, smaller properties in Leith saw the greatest rises with a year-on-year increase of over 20% for the price of a 1 bedroom flat. Even with this, the current average in the area for such a property is £112,900, which is still significantly lower than the average of £128,000 for a similar property in the rest of the City. This, along with ongoing resurgence of the area, has attracted a number of first time buyers who are keen to get onto the property ladder.

In terms of east central Scotland as a whole, 5,000+ properties were sold in the last 3 months of the year. These were worth almost £1bn and up 10% on the same period in the previous year, making it the highest recorded level between October and December in ESPC’s 36 year history.