ESPC House Price Report February 2015

Edinburgh in SpringSummary

  • The number of homes brought to the market saw an increase during the month of February.
  • Seller activity saw a particularly sharp increase in the upper-mid market with new homes being marketed ahead of the imminent change to property tax.
  • The average selling price in East Central Scotland increased by 15% in the three months up to and including February year-on-year.
  • The percentage of sales achieving the Home Report valuation remains strong at 69%.

Full report

Latest figures from ESPC show that the strong start to the year has continued in the local property market throughout East Central Scotland. During February buyer activity increased with the number of homes sold rising on an annual basis by 16%. Seller activity also increased with the number of homes marketed up by 13% compared to February 2014.

We continued to see an increasing trend in the number of upper mid-market properties coming to the market ahead of the introduction of Land and Buildings Transaction Tax (LBTT) on 1st April this year. The number of new properties marketed in February with an asking price of over £300,000 was 53% more than February 2014.

Commenting on the results, Paul Hilton, ESPC CEO, explained;

“We have continued to see an increased volume of new listings with an asking price of over £300,000 marketed this month, with sellers hoping to attract buyers looking to take advantage of a lower tax bill. We expect to see this percentage increase start to slow next month with the change becoming more imminent and therefore allowing less time for a sale to settle before the changes are implemented. Buyers must have their sale settled before 1st April to pay tax under the current Stamp Duty regime. Any sales which are settled after this date will pay tax under the new LBTT regime. Properties sold for over £333,000 will pay less tax before 1st April 2015.

“The median selling time in East Central Scotland is down by 12% during the three months up to and including February a year ago. Increased competition from buyers not only means quicker selling times but also more sellers achieving their Home Report valuations. The percentage of sales achieving their Home Report valuation in the same period rose from 60% a year ago to 69% today.

“Prices have increased year on year but have remained fairly consistent in the three months up to and including January. The average house price in Edinburgh for the three months to February was £216,021, up 15% annually. 

“The outlying areas again have seen an increase in average selling price year-on-year. West Lothian has again seen a particularly sharp increase of 26%, up to £182,756 compared to £134,677 in the same period last year.”

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