House prices surged by nearly £28,000 in East Lothian and by £20,000 in Midlothian, the regions East and South of Edinburgh respectively.

They also rose by nearly £19,000 in Edinburgh itself.

The areas have been subject to high demand against limited supply, while East Lothian has the appeal of being a coastal location.

Following the surges house prices average at £297,000 in East Lothian, £287,700 in Midlothian, and £294,200 in Edinburgh.

David Alexander, the chief executive officer of DJ Alexander Scotland, which conducted the analysis said: “Demand remains strong from Scotland’s homebuyers.

“However, the gap between the most expensive place to buy and the cheapest is concerning and could indicate a growing divergence between some more affluent areas and the rest of Scotland.”

There were two areas which recorded a fall in average prices, as they fell by £5,700 in Aberdeenshire and by £3,400 in South Ayrshire.

Overall Scottish house prices increased by £10,700 over the period, an annual increase of 5.9%.

Alexander added: “Continued uncertainty over the future of the North Sea oil and gas sector is causing a drag on prices in Aberdeenshire.

“North, East and South Ayrshire alongside West Dunbartonshire are all in the bottom ten performing area indicating a considerable slowing of the market in these areas.”

He said: “Lower mortgage rates later this year and the potential easing of lending criteria will help but there are a number of exacerbating influences including employment uncertainty due to rising employer National Insurance costs, and further tax rises anticipated in the Autumn Budget.

“However, for the moment, these figures show a remarkable resilience on the part of Scottish homebuyers.”

Source

By admin