Sales climb to £65m as estate agent toasts 30th anniversary

A LEADING Edinburgh estate agent has bagged a record year for sales as it celebrates its 30th year in business.

And barring any huge hikes in interest rates in the near term, its managing director expects 2007 to set a further record.

Stewart Saunders, which has its headquarters on Frederick Street, saw sales soar 25 per cent in 2006 to around 65 million.

Set against an average price increase of ten per cent, the figure represents a 15 per cent rise in real terms.

The firm, which sold 267 properties during the year at an average price of 225,000, added that it had started the new year equally strongly - punting 1.5m worth of homes in the first three working days of 2007.

But managing director David Alves said sales had taken on a bizarre timing pattern - with traditional peak periods all but disappearing and home owners deciding to buy and sell more evenly all year round.

He said: "I think part of it is that fewer buyers and sellers are families, with children to think about. Traditionally there was a massive rise in April and May, so people could settle into their new houses and move children to a different school at the beginning of the year.

"It also used to slow down a lot when people wanted to go away on holiday in July and August - but people holiday all year round now, they are not confined to the summer.

"I wouldn't be surprised if January and February turns out to be the peak period of this year."

He added that the rental market had been given a powerful boost by eastern European immigrants to the city.

He said: "There have been a lot of buy-to-let sales because the rental market has really taken off again, and there is a big demand for first-time buyer properties.

"Demand in Edinburgh is really outstripping supply. I have never known such a shortage of property for sale in my 35 years as an estate agent."

He added: "Anything under 200,000 is going almost instantly. We had a property suitable for first time buyers for sale on Dalkeith Road recently which was snapped up in four days - without us having to do any press advertising."

He said the firm, which is due to complete its luxury West Links suites development in North Berwick by the end of the year and is also behind the Opus One Apartments at Pilrig, was expecting Edinburgh to see a seven per cent increase in prices over 2007 - unless interest rates rose more than 1.5 per cent.

He added: "I think a big interest rate rise is unlikely, so I would expect the market to continue buoyantly. Barring significant increases in interest rates, we will have another record year.

"Edinburgh is a more and more popular place to live. The cream of the UK's graduates are choosing to live here rather than London because of the price of property there, and also the fact that Edinburgh is topping a lot of polls of quality of life of UK cities."