While the English capital reports it's house price data in the shadow of dramatic slump predictions, prices in the Scottish capital have kept on climbing with a minimum of fuss.

One of the region's leading property marketers, Edinburgh Solicitors Property Centre (ESPC) has released its quarterly analysis of sales achieved during the three months ending 31 December 2001, in which it found that the average price paid for a home in and around the Scottish Capital rose by 12.28 percent, when compared with the equivalent period in 2000. This latest hike takes the average from £95,425 to £107,144.

Comparing data for the whole of 2001 with the previous year's results revealed an annual rise of 9.94 percent, reflecting a rise in the average price paid from £93,928 to £102,646. The number of sales was also up by 8.1 percent over the quarter and by 7.4 percent for the year as a whole. A combination of rising prices and higher volumes led to the total annual sales value rising by 17.3 percent to stand at £1.475 billion (£386.9 million over the fourth quarter - up over a fifth on the fourth quarter of 2000).

According ESPC chairman, Robin Stimpson: "For the second consecutive quarter, we've recorded price rises in every one of our 12 standard survey categories. The market in and around Edinburgh continues to be very strong, with many properties selling extremely quickly.

"Given that the local market has been so buoyant for the past five years, it's perhaps hardly surprising that some market commentators have been speculating that boom will inevitably be followed by bust. Such speculation has proved ill-founded to date, however, with record-breaking performances recorded throughout last year, despite a rocky Stock Market and the terrorist atrocities of September.

"Of course, economic cycles tend to ensure that prices and incomes adjust over time. No-one expects the gap between earnings and property values to continue to widen indefinitely. What we can be confident about, however, is that Edinburgh remains a highly desirable city in which to live and/or work. Notwithstanding any unpredictable, macroeconomic changes, therefore, the demand for quality accommodation is likely to continue to outweigh supply - at least over the next six months.

"Many of our member firms have been telling us that their clients have been awaiting the New Year before putting their homes on the market. In fact, right now is an excellent time to sell, as our matching and mailing database is full to overflowing with people keen to buy. What's more, our stock of properties for sale has rarely, if ever, been lighter. We're looking forward to a very busy first quarter."

Looking at the company's sales data in greater detail, it's clear that price pressures in the more central areas of the city are continuing to drive more home hunters to extend their search patterns to the suburbs and beyond; a trend which was first identified more than a year ago.

Although at first glance the figure reported for modern detached villas suggests a price rise of nearly 40 percent, more detailed analysis reveals that the sample for 2001 was weighted by one particularly high priced property which, if excluded, reduces the price increase to 24.5 percent. All but one of the four suburban sample categories turned in above city average price rises, confirming the trend.

Further afield, in Fife, prices have also been rising steadily, with a fourth quarter average recorded of £63,874 - 14.9 percent up on the previous year (2000 - £55,591). East Lothian and Midlothian performed well, with rises of 14.9 and 9.9 percent respectively. While prices for West Lothian appear largely unchanged from their 2000 levels, it should be noted that this region delivered significantly higher than average price rises over the course of the first three quarters of last year.

At £137,069, the average price paid by those wishing to live in the heart of Scotland's Capital was up by nearly a fifth on the previous year. First time buyer homes along Leith Walk and in Gorgie/Dalry continue to be in demand, with healthy increases reported, which was also the case for Edinburgh's traditionally popular areas of Marchmont/Bruntsfield and Stockbridge/Comely Bank.

Robin Stimpson concludes: "Edinburgh's property market is in excellent shape. A combination of steadily improving prices, high quality new developments, a range of public/private regeneration initiatives, and a healthy local economy should ensure the long term investment potential of owning an Edinburgh house or flat."

For further information, please contact:
Simon Fairclough/Kate Gillespie
Tel: 0131 624 8888 (office hours)
Tel: 07710 472731 (outwith office hours)
e-mail: marketing@espc.co.uk
http://www.espc.com