House prices plunge in Scotland

House prices are falling across much of Scotland.

The Edinburgh Solicitors Property Centre reports that in Edinburgh itself, house prices are down 3.6% annually and in East Lothian have dropped 5.3%.

Some property types have dropped particularly badly. The ESPC says three-bed suburban semis are now 15% lower in value than a year ago.

The ESPC also reports that there is a glut of properties for sale on the market, and says that 68% of properties which have sold went for less than the ‘fixed’ asking price – up from 56% a year ago.

ESPC analyst David Marshall said: “House prices rose in 2010 but are now starting to ease back, meaning home values in most areas are now back in line with levels we were seeing two years ago.

“The market is most challenging for sellers of smaller properties, with low demand from first-time buyers and buy-to-let investors, meaning that those wanting to secure a quick sale at this end of the market will probably have to be willing to accept a lower offer than they might have hoped.”

Whilst the ESPC has reported house price rises in the Lothians, it is forecasting that these will be short-lived, with the number of transactions around half of those at the peak of the market.