According to the Edinburgh Solicitors’ Property Centre (ESPC), house prices in Edinburgh rose by 15.4% over the year to an average of Â£221,875. The EPC, which consists of over 230 member solicitor estate agents in East Central Scotland, puts this down to a higher proportion of larger houses being sold. 42% of October sales comprised of 3 and 4 bed-roomed houses compared to 36% last year.
But the average prices of flats also showed an increase. The overall number of houses changing homes also went up by 10.9% and more properties sold at Fixed Price. Another indicator of an improved market is that the time taken to complete deals has reduced from over 5 months to around about 3 months. The number of homes for sale in Edinburgh has also increased, which should hopefully keep prices from increasing too rapidly.
Although this shows an improving market, it does seem to be isolated to one part of the UK. When VAT and stamp duty holidays end next year and some economic truths come home to roost we may see slides in prices in Edinburgh.
As far as I can see these average prices are derived from properties that have been sold through ESPC, as they state that it is based on ‘…the average selling price of a home in the Capital…’. At the end of the day there are only so many of the larger homes that can be sold. Once they have processed through then we may see that actual average house prices in the area haven’t really gone up at all.