Edinburgh area house prices fall

The average house price in Edinburgh fell by 1.1 per cent compared to the previous year in the three months to January.

Between November and January the average selling price of a property in the Capital was £211,956 – down from £214,222 during the same period a year ago – and experts warn that the trend is likely to continue throughout the year, with sellers of smaller properties particularly likely to struggle.

Prices in the city centre showed a year-on-year increase of 3.4 per cent – but the average value of properties in West Lothian plummeted 24 per cent due to a rise in the proportion of smaller properties selling.

There has been very little change in the factors affecting the market over the last year or so and consequently trends have been fairly consistent.

The market for smaller properties continues to face the greatest difficulties as the impact of lending restrictions has a more pronounced effect on buyers here.

David Marshall, business analyst with the Edinburgh Solicitors Property Centre ESPC, said: “Conditions are comparatively favourable for sellers of larger, family homes although across the board the number of homes selling is still well below that recorded prior to the credit crunch.”