Bruce Rae Property Management

Conclusions of the Year End Review 2009 Edinburgh Housing Market Monitoring Report

There was a period of stabilisation in the Edinburgh residential property market towards the end of 2009. Volumes remained around 420 – 440 a month towards the end of 2009 after a fall over 2008. Prices rose slightly after falls in 2008. New mortgages approves have been rising, albeit they are at a historically low level.

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