HOUSE PRICE REPORT: May 2011

For Immediate Release

5 May 2011

- ESPC HOUSE PRICE REPORT: MAY 2011 –

Most areas of East Central Scotland saw house prices decline in the
three months to May. Falls this year generally offset sharp rises in the
first half of 2010.
The average house price in Edinburgh stood at £214,938 over the last
three months – down 4.4% from £224,797 during the same period in
2010.
The number of homes currently available for sale is 35% higher than
would typically be seen at this time of year meaning buyers are in a
strong negotiating position.
33% of homes sold at Fixed Price in Edinburgh achieved the asking
price, down from 45% last year.
The expectation is still for average house prices to show annual falls
of between 3 and 5% in coming months.

Overview
Regional Analysis – Edinburgh
Regional Analysis – Lothians
Regional Analysis – Fife & Kinross
Summary Table

Overview
Latest figures from market leader ESPC reveal that the average price of a home sold
in Edinburgh during the three months to May stood at £214,938 - down 4.4% from
the same period in 2010. Other areas also saw prices fall. In Midlothian a 7.8% drop
took the average to £160,922 whilst in Dunfermline the average house price now
stands at £133,773 following a year-on-year decline of 3.7%.

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David Marshall, business analyst with ESPC commented: “At the start of last year
prices rose sharply fuelled in largely by comparatively high demand in the middle to
upper end of the market. These rises are now being offset by falls in the early part of
2011.

“Conditions in the market favour those looking to buy. There are around 35% more
properties for sale than you would normally expect to see at this time of year
meaning sellers are having to show more „wiggle-room‟ in negotiations. This is
reflected in the figures we‟ve seen recently with only 33% of Fixed Price sales over
the last three months achieving the asking price compared to 45% over the same
period last year. Many sellers are finding they have to lower their expectations on
the price their home will achieve, although obviously when it comes time for them to
buy the shoe is on the other foot meaning they will probably be able to spend less on
their next home than they may have thought.

“Our expectation is that prices will continue to edge down by around 3 to 5% as

prices continue to come down from the high levels seen last year.”
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Edinburgh
The average price of a home sold between March and May in Edinburgh was
£214,938 – a year-on-year fall of 4.4%. The decline followed an annual rise of
11.8% during the same period in 2010 meaning that the new average is now 6.9%
higher than that recorded in 2009.

David Marshall explained: “We saw sharp rises in price in most areas during the first
few months of last year and the falls we are seeing now go some way to offset these.
Most notably in Marchmont and Brunstfield the average price of a two-bedroom flat
fell by 15% annually this year, but this followed an anomalous 35.6% rise last year.
The average of £248,388 recorded over the last three months is 15.3% higher than
that observed two years ago.

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"Similar if less pronounced patterns were seen elsewhere in the Capital. In the City
Centre a 14.5% annual rise in 2010 was followed by a 10.5% drop this year.
Meanwhile, in Stockbridge and Comely Bank a 7.4% drop in the average price of a
two-bedroom flat this year came on the back of a rise of 15.6% at this time last
year.

“Low sales volumes will continue to be mean there is some volatility in figures but
generally we expect to see prices continue to come down from the high levels seen
in the middle of 2010.”
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Lothians
House prices across the Lothians followed a similar trend to those seen in Edinburgh
with rises last year being followed by falls this year. In Midlothian a 7.8% annual
drop this year followed a rise of 12.6% last year with the average now standing at
£160,922. In West Lothian a 13.8% annual rise in 2010 was offset by a 15.8% drop
in 2011 taking the average in the region to £142,978.

East Lothian bucked the trend somewhat with a 7.9% bringing the average house
price between March and May to £215,847, however this rise was said to be unlikely
to be prolonged.

David Marshall commented: “Unlike other areas in East Central Scotland, East
Lothian saw a year-on-year rise in price during the last three months. This was
largely fuelled by a small number of sales towards the upper end of the market
however and we should see the average come back down in months ahead.”
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Dunfermline
The average house price in Dunfermline during the three months from March to May
stood at £133,773 following a year-on-year fall of 3.7%. This marked the first time
an annual fall in the three-month rolling average had been observed since January
this year.

David Marshall commented: “The factors affecting the market in Edinburgh and the
Lothians also hold true in Dunfermline. There are more properties for sale and fewer
people able to buy meaning there is a high degree of competition amongst sellers.
This should see prices in the town continue to come down on an annual basis over
the next few months before levelling off at the end of the year.”
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Notes to editors
ESPC is the number 1 channel for marketing property in East Central Scotland

912 words

Figures quoted are based on all residential sales recorded by ESPC in the quoted period. ESPC do
not seasonally adjust figures and for this reason reference year-on-year price changes unless
otherwise stated.

ESPC was founded in 1971 and comprises 200 member solicitor estate agents across East Central
Scotland.

Press releases issued by ESPC can be viewed by visiting the “Market Watch” section at espc.com

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ESPC STATISTICS SUMMARY

Mar 2011 - May 2011

Mar-May Mar-May
Property Type YOY %
2011 2010
City of Edinburgh
CITY OF EDINBURGH All properties £214,938 £224,797 -4.4%
City Centre All properties £229,169 £256,153 -10.5%
3 bedroom semi £251,565 £236,783 6.2%
Suburbs
4 bedroom detached £359,772 £386,258 -6.9%
Marchmont/Bruntsfield 2 bedroom flats £248,388 £292,030 -14.9%
Gorgie/Dalry 1 bedroom flats £99,206 £108,467 -8.5%
Leith Walk/Easter Road 1 bedroom flats £108,900 £109,440 -0.5%
Stockbridge/Comely Bank 2 bedroom flats £233,587 £252,343 -7.4%
Lothians
East Lothian All properties £215,847 £200,056 7.9%
Midlothian All properties £160,922 £174,508 -7.8%
West Lothian All properties £142,978 £169,718 -15.8%
Fife
Dunfermline All properties £133,773 £138,894 -3.7%

Is s ued by ESPC (UK) Ltd

For further i nforma tion pl ea s e contact:
Da vi d Ma rs ha l l
e: da vi d.ma rs ha l l @es pc.com

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