A new report released by the Edinburgh Solicitors Property Centre (ESPC) has shown that house prices in Edinburgh have fallen by 2.1% in the past year. The fall in house prices within the Edinburgh and Lothians area has been attributed to the current economic downtown with buyers being reluctant to pay the prices they once did.
Downturn creates two tier housing market
The ESPC is reporting that a two-tier housing market has been created by the economic downturn with smaller properties in Edinburgh continuing to struggle while family sized homes are remaining steady but that the market is not as flexible as it was before the current economic downtown.
David Marshall, a business analyst with ESPC commented "The market for smaller properties has been hardest hit in recent years due to a downturn in activity among first-time buyers and buy-to-let investors, meaning smaller homes now account for a smaller proportion of sales than they used to."
The report which was published last week shows that a one-bedroom flat in the Leith area of the city has dipped below £100,000 valuation for the first time since 2006. The economic downturn has also hit family homes within Edinburgh as average house prices have fallen by nearly £5,000 in the last year. Ensuring that your home is in top shape and does not require any structural repairs can lead to you beating the economic downturn.
Glasgow house prices rise
While the economic downturn has resulted in a 2.1% fall in the average price in Edinburgh for the past year, the downturn has not had such a dramatic effect in Glasgow. House prices in Glasgow have risen by nearly 4% in the past year. While it may be bad news for home-owners in Edinburgh it is not bad news around the rest of the country as the west of Scotland is bucking the trend of falling house prices. Despite the rise in Glasgow house prices, the average remains down from the peak of 2007 before the economic downturn took effect.
Les Meikle, aka the Rotter, MD of Wise property care commented: "The economic downturn has resulted in tough times for home owners. The recent report by the RICS on the housing market seems to confirm the findings by the ESPC. Certainly, the next 12 months will be hard going for everyone associated with the housing market."
Additional stories regarding the housing market
- RICS advises on housing market
- Scotlands property market outperforms rest of the UK
- Housing market hit by uncertain economy