HOMEOWNERS in Edinburgh lost an average of £200 a week over the past year as property prices continued to tumble.
The average house price in the capital dropped from £201,657 for the quarter up to February 2012 to £191,623 for the same period the following year.
Although the average drop in value across the market was 5%, single bedroom starter flats were particularly badly hit while family homes in the suburbs increased their worth.
The figures, from the property solicitors’ umbrella group the ESPC, showed a three-bedroom semi-detached suburban house was worth £232,306, a rise of 8.5% from last year.
The average price of a one bedroom flat in Leith Walk or Easter Road fell by 16.4% and is now just £89,326.
Nearly 84% of homes sold for less than their Home Report valuation, down from 85.9% a year ago, and buyers paid an average of 6.3% below the property’s Home Report valuation.
David Marshall, business analyst with ESPC, said: “You tend to see some volatility in prices at a local level from one period to the next, and certainly I wouldn’t anticipate that we’ll see such a sharp rate of change in either case continuing over a prolonged period of time.
“That said, the market for family homes has generally been more robust than that for smaller properties over the last couple of years.
“We’ve started to see more first-time buyers and buy-to-let investors returning to the market, but in most cases they’re looking to negotiate reasonable discounts from sellers. As a result, while the number of sales of smaller homes has risen, this hasn’t been matched by an increase in prices.”
The ESPC figures show house prices in the capital have fallen every month since July 2012.
East Lothian and West Lothian house prices both saw a rise of 17.4% from the year before.
Lending
House prices in East Lothian soared to £214,037 from £182,300 a year ago, with a surge in sales of newly-built larger homes.
In West Lothian prices rose to £154,800 to £131,899 a year ago, but this comes after a steep drop of 26.6% a year ago.
In Midlothian average house prices dropped 4.5% from in December 2001 to February 2012£156,134 to £149,056.
ESPC said there were fewer buyers due to the squeeze on mortgage lending, meaning sellers had to accept lower offers.
Mr Marshall said: “Although the number of homes selling has been rising over the last 12 months or so, market conditions continue to favour buyers, which is why we’re still seeing a majority of homes selling for less than their valuation.”
The group says the number of properties sold is rising, with 7.6% more being sold from last year, but this is still 35% less than 35% lower than when the market peaked in 2008.
