Bruce Rae Property Management

Good start to the year for Edinburgh Property

Figures released recently by Edinburgh Solicitors’ Property Centre (ESPC) show that the property market in East Central Scotland continues its upward trend, with no indication of slowing down in the foreseeable future. In the first quarter of 2007, prices in the Capital increased by over 16% compared to the same period in the previous year. This takes the average price in the city to £207,669, almost trebling an average price of just £68,195 in the first quarter of 1997.

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