Lothian house prices on the rise as market gets moving

AVERAGE house prices and property sales across the Lothians have risen sharply over the past 12 months.

The latest sales figures from Registers of Scotland show the average house price in Edinburgh has increased by 15,500 since this period last year to 213,915, the highest of any council area in Scotland.

The city also saw an increase of 18 per cent in sales, with just over 2000 properties changing hands between April and June.

The Capital was closely followed by East Lothian, where the average property price rose by 30,000 in just one year to 201,359, making the county the second most expensive place to buy in Scotland. It also saw a 25 per cent increase in the number of sales, with experts saying that East Lothian is becoming a more affordable alternative to living in Edinburgh for families.

House prices in Midlothian rose by 10 per cent to an average of 171,372, although sales decreased by just under 7 per cent.

The picture was roughly the reverse in West Lothian, where sales received a boost of 9.5 per cent, but the value of the average home rose by just 4.8 per cent.

David Marshall, business analyst for the ESPC, said although the report for this quarter showed a significant increase in value and sales for the Lothians, the number of homes being sold is still around half of that pre-recession. He also said that the figures had been skewed by the number of large homes being bought. Families already on the property ladder are more likely to be able to afford a deposit and the option to buy a bigger home, whereas first-time buyers have struggled to afford substantial deposits and to secure loans.

He said: "The market for smaller properties has been relatively subdued with the impact of restricted lending criteria generally more significant for those looking to buy smaller homes. Despite recent rises, over the course of they year we still expect prices to be broadly unchanged.

Mr Marshall also said that while East Lothian saw a drop in the average house price of 11 per cent last year, the county had out-performed most areas since 2007.

He added: "With people increasingly cash conscious East Lothian can be an attractive option for some who might not previously have considered looking outside of the Capital."