City Guide to Edinburgh, Scotland

City Guide to Edinburgh, Scotland

RoS Q1 2011/12: Edinburgh House Prices Drop 2.7%


By edg - Posted on 02 August 2011

New Town from Edinburgh Castle battlements

Registers of Scotland published statistics today showing that the average price of a residential property in Edinburgh dropped 2.7% during the first quarter (April to June) of the financial year 2011/12 compared with the same period the previous year.

The average price for an Edinburgh residential property for this quarter was £208,333 compared to £214,169 the previous year. By comparison, Scotland as a whole saw the average house price rise  by 0.4% to £153,820. (See breakdown of Edinburgh house prices)

The highest percentage average price rise was recorded in Scottish Borders with an average price of £187,046, a rise of 15.2% compared with the same quarter the previous year. East Renfrewshire recorded the highest average price of £221,309, a rise of 10.9% compared with the same quarter the previous year. The largest percentage fall in price was in North Ayrshire which showed a drop of 9.5% with an average price of £108,049. See map of latest prices by area.

The price falls come in spite of the Bank of England maintaining interest rates at the historically low rate of 0.5% since March 2009, with little sign of rates going up in the near future. 

With inflation running at 4-5% and gold prices hitting historic highs, it means that in real terms house prices have fallen even further.

Sales down

The City of Edinburgh still remains the largest market with 1,867 residential house sales worth £388.9 million. However, this also represented a 12.8% drop in the value of Edinburgh sales and 10.4% drop in the number of houses sold in the capital on the previous year.

The higher end of the Edinburgh property market still seems to be relatively buoyant with the volume of detached residential properties increasing 9.4% from 170 to 186 annually, although the average price for detached residences was down 4.2%.

Scotland wide

The downward trend was reflected in the the total volume of sales across Scotland. During the first quarter of 2011/12 16,947 sales were registered, a decrease of 10.8% on the same quarter the previous year.

When looking at the broader picture throughout Scotland, all property types showed a decrease in sales volumes when compared with the previous year.

The total value of sales across Scotland registered in the quarter fell by 10.5% compared to the previous year to just over £2.6 billion.

RoS's statistics are considered the most reliable housing market figures as they cover all residential sales, including sales for cash not involving a mortgage.

Edinburgh Sales Volumes by House Type

  • Detached residences: +9.4%
  • Semi-detached residences: -1.5%
  • Terraced residences: -19.5%
  • Flats: -11.4%

Total Edinburgh Sales Volume: -10.4%

Average Edinburgh house prices by type:

  • Detached residences: £341,002 (-4.2%)
  • Semi-detached residences: £224,343 (-10.4%)
  • Terraced residences: £235,599  (-4.6%)
  • Flats: £179,521 (-3.5%)

Average Edinburgh house price: £208,333 (-2.7%)

Source: RoS