ESPC House Price Report July 2015

Key points

Between May and July 2015:

• 4.1% more homes have been sold in east central Scotland, compared with the same period last year.
• The average selling price in east central Scotland decreased by 0.1% compared with the same period last year.
• 61.5% of sales achieved their Home Report valuation, compared with 58.2% between May and July 2014.
• The number of new homes being brought to market decreased by 8.8% annually.

More homes are being sold as average selling prices remain level

ESPC has released the latest analysis of the housing market, revealing that selling prices are increasing and decreasing at different levels across Edinburgh, Fife and the Lothians.

While the average selling price of properties across east central Scotland remained at almost the same level between May and July 2015 compared with the same period last year, some areas have seen a larger increase than others.

4.1% more homes have been sold across east central Scotland between May and July 2015, compared with the same period last year, while the number of new homes being brought to market decreased by 8.8% annually. 61.5% of homes are achieving their Home Report valuation, indicating the market is still in favour of the seller as less properties are being put forward for sale, driving up demand.

In Edinburgh, Dalry and Gorgie property prices are continuing to show strong growth with a 14.6% increase in selling prices for one bedroom flats compared with the same period last year.  This could indicate it is becoming a popular area for first time buyers and young professionals to get a foothold on the market. Meanwhile the Leith Walk area, which has been a popular area for first time buyers for some time, rose by 6.1% and Meadowbank and Abbeyhill by 2.6%.

Other areas in Edinburgh which are showing strong growth are Morningside and Merchiston. The average price of a two bedroom flat increased by 18.3% between May and July 2015, compared with the same time last year.  Stockbridge and Comely Bank are continuing to grow, with a 10.7% rise in average property prices for a two bedroom flat.

At the other end of the spectrum, average prices for a three bedroom house in Liberton and Gilmerton have decreased by 22% compared with the same period last year. This could be attributed to increased competition for the number of new build family homes now available in the area as first time buyers are finding support under the Help to Buy scheme.

In comparison, the average selling price for all flats in Liberton and Gilmerton has increased by 22.8% year on year.

The seaside areas of Portobello and Joppa have seen a 6.1% decrease in house prices, and Currie, Balerno and Juniper Green have seen an 11.9% decrease.

East Fife and Dunfermline are continuing to be popular places to buy a property, with up to 15.2% growth in property prices.

Maria Botha-Lopez, ESPC’s business analyst said: “This month’s house price report shows that this is the second three month rolling period where we are seeing average selling prices at about the same level as they were this time last year. It appears that the short term effects of LBTT have tapered off, and it will be some time before we see the long term effect.

“While some parts of Edinburgh are showing increases in average selling prices, other areas are showing decreases, making these areas more affordable for first time buyers or home-movers. It highlights the impact that new builds and the Help to Buy scheme has had on the existing property market - when existing properties are competing with new builds, aided by government incentives like the Help to Buy scheme. ”

“The Bank of England’s recent announcement that interest rates will be kept at the 0.5% base line is also a positive step for the Scottish property market.”

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