Capital weathers the storm to top house price league again

Published on Saturday 2 October 2010 01:41

EDINBURGH home-owners are enjoying a property boom with the highest average property value in Scotland, according to figures released yesterday.

The average house price in the capital is now 227,926, more than 68,000 higher than the average Scottish house price, which is currently 159,890.

In contrast, average property prices in North Lanarkshire currently stand at 106,006, the lowest in the country, 53 per cent less than in Edinburgh and 34 per cent below the national average.

The survey released yesterday by Zoopla.co.uk lists Aberdeenshire as having the second highest average house prices at 205,254, followed by East Lothian in third place with an average of 201, 958.

At the other end of the scale, North Lanarkshire's rating as the lowest national Scottish average is followed by Shetland at 107,696 and West Dunbartonshire at 120,573.

Nicholas Leeming, the commercial director of Zoopla.co.uk, said that, despite the "wobbles" in the city's financial sector Edinburgh, was set to retain its place at the top of the league table.

"It is clear that some parts of Scotland have performed much better than others through the downturn of the past three years and, as the economy strengthens, the Scottish housing market will likely perform best in those areas that are least sensitive to the upcoming public sector cuts," Mr Leeming said.

"Edinburgh is clearly very dependent on the financial services sector and suffered a big hiccup with the Royal Bank of Scotland over the past three years.

"But banking is now relatively stable and has restructured and is looking ahead to the future.

"Those employed in that line now and who have mortgages to pay are in a more secure position than those living in areas which have been dependent on traditional areas without new industries coming in.

"House prices are affected by confidence and demand, and the two are often inter-related. With the financial sector looking more settled, it is often those areas more dependent on government-funded employment which see property prices suffer most."

A breakdown of the data shows the top three highest value streets in Edinburgh as being Wester Coates Avenue with the average home value at 1,420,879, followed by Succoth Place at 1,339,085 and Barnton Avenue at 1,185,339.

Eric Peterson, senior partner at Tait and Peterson solicitors and estate agents, based in Lerwick, Shetland, said various factors could drive average prices down in rural areas, but the benefits of the location should not be overlooked

"Shetland may have come second in the top ten poorest housing markets, but you get a lot more for your money here. The facilities are second to none in terms of eduation and care of the elderly, and the crime rate is one of the lowest in Scotland," Mr Petersen said.

"It may be that there has been a run on council house sales, which put the average house price down," he added. "Another factor pushing the price down could be the sale of house plots and crofts.

"There could well be financial difficulties ahead with the public sector cuts and the problems with the economy. One or two companies have already folded in the downturn. But Shetland has great community spirit and people tend to help each other out."