Edinburgh house prices dropping

EDINBURGH house prices are 3.7 per cent lower than a year ago after the first annual decline since January.

The average home in the capital is now worth 213,718, according to the Edinburgh Solicitors' Property Centre (ESPC), which said an excess of supply over demand was pushing asking prices down.

Prices in Edinburgh are likely to drop further in the coming months, wiping out increases recorded in the first half of 2010, according to ESPC's David Marshall. He said: "While the number of sales remains comparatively low there is likely to be some volatility in figures from month-to-month, but we still expect that the overall trend will be for the average house price to come back to levels seen at the start of 2010 in the months ahead."