Edinburgh house prices fall by 10%

HOUSES prices in Scotland's capital plunged by more than 10 per cer during the last quarter of 2008, it emerged yesterday.

The Edinburgh Solicitors Property Centre (ESPC) survey revealed that the average selling price of a home in the city had slumped below 200,000 for the first time since the start of 2007.

Across the east of Scotland, the average house price during the last three months of 2008 fell by 8.5 per cent. The figures compare the final quarter of last year with the same period in 2007.

The average house price in Edinburgh was 193,354, compared with 215,168 for the equivalent period 12 months previously, a drop of 10.1 per cent. The average city-centre price was 13.6 per cent down.

Ron Smith, chief executive of the ESPC, said: "As the economic impact of the credit crunch grew over 2008, a downward adjustment in prices became inevitable. There is no question it was a turbulent year.

"The situation in financial markets resulted in severe restrictions being placed on lending criteria, meaning the housing market was impacted more swiftly and significantly than anticipated."

According to the ESPC, 825 properties were sold in Edinburgh during the final quarter of 2008, compared with 2,500 for the same period in 2007.

The previous quarter had seen the average price in Edinburgh fall 1.2 per cent. August had seen the first fall in property prices in the capital since 1971.