ESPC House Price Report: November 2014

Edinburgh at night

Summary

  • The number of homes sold across Edinburgh, the Lothians and Fife rose by 19% annually during the three months to November, with the largest increase in sales being in the upper-mid market.
  • The number of homes coming onto the market also rose with new instructions up by 13% on an annual basis.
  • There was an increase in the number of higher priced homes coming onto the market ahead of the introduction of Land & Buildings Transaction Tax in April.
  • The median selling time across East Central Scotland has shortened from ten weeks a year ago to seven weeks this year.
  • Within Edinburgh around 60% of homes sold between August and October achieved their Home Report valuation. In other areas of the Lothians and Fife just under 40% of those sold achieved valuation.

Full report

Latest figures released by ESPC show that activity in the property market in Edinburgh, the Lothians and Fife has continued to strengthen as 2014 draws to a close. Between September and November the number of sales recorded by ESPC rose by 19% on an annual basis bringing sales to their highest level for the period since 2007. It is the upper-mid market that has seen the greatest rise in demand, with sales of homes in the £300,000-399,999 bracket rising by 33% annually. By contrast, sales of properties at under £100,000 rose by a modest 1% compared to the same period a year ago.

The supply of properties to the market has also improved, with new instructions through ESPC up by 13% year-on-year. Interestingly, in recent weeks there has been a particularly noteable rise in the number of higher value homes coming onto the market following the announcement of the proposed bands for Land & Buildings Transaction Tax (LBTT) which will replace Stamp Duty from April 2015. During November itself the number of new instructions with an asking price of £325,000 rose by more than 92% annually.

David Marshall, Business Development Manager with ESPC explained: “Whilst most buyers will pay slightly less tax following the introduction of LBTT in April, those buying higher value homes will incur a higher tax bill. Under the proposed LBTT system anyone buying a home for more than £254,000 would pay more tax from April than is currently the case meaning buyers at the upper end of the market have an incentive to bring forward their purchase if they can.

“Many sellers are already looking to get their home on the market to take advantage of this expected rise in demand and we’d expect the first three months of 2015 to be a particularly busy period for the property market north of the border.

“Overall, 2014 has seen a substantial improvement in the local property market. Selling times have shortened significantly, with the median selling time down from ten weeks a year ago to seven weeks today and more sellers are seeing their properties achieve or exceed the Home Report valuation than at any stage since Home Reports were introduced in 2008.”

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