ESPC House Price Report February 2017
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Key points
The average selling price in east central Scotland between December and February of this year (£217,179) has increased by 5.2% when compared with the same period last year
The number of homes sold in east central Scotland between December and February of 2017 decreased by 4.9% annually
The number of new homes brought to market between the months of December and February decreased by 6.0% annually
The median selling time in east central Scotland is 23.6% faster when compared to the same three-month period a year ago – from 38 days down to 29 days
85.5% of properties listed between December and February 2017 were marketed as ‘offers over’, compared with 78.9% in 2016.
Positive signs for first time buyers in the latest ESPC house price report
The demand for one and two bedroom flats has now been outstripped by three bedroom homes, potentially making it easier for first time buyers to get on the property market, according to the latest analysis from ESPC, the leading property experts in east central Scotland.
Three bedroom houses in the Blackhall, Corstorphine and South Queensferry areas are showing the largest year-on-year increases in average selling prices between December and February of 2017. Corstorphine has seen a 16.8% increase in average selling prices, Blackhall, Davidson’s Mains and Silverknowes have seen a 26.7% increase in average selling prices and 25.4% in South Queensferry and Dalmeny.
Average selling prices for typical first time buyer properties, while still showing positive growth, are calming down compared with the stronger price increases for three bedroom properties, which is often the next step on the property ladder. Less demand for one and two bedroom flats could be a result of the changes to stamp duty last year, when the Scottish Government introduced a 3% supplementary tax on second homes, as a way to curb the growing buy-to-let market.
As we have seen over the past year, we are still in a seller’s market, with a decrease in the number of properties available to buy. This has resulted in a 5.2% increase in average selling prices across east central Scotland, as lack of properties are increasing demand for those available. Similarly time to sell is now 23.6% faster than the same time last year – from 38 days down to 29 days.
ESPC’s business analyst Maria Botha-Lopez says: “The introduction of a supplementary tax on second homes initially drove up the average selling prices for one and two bedroom flats. But what we are seeing now is three-bedroom properties are showing greater price increases, while average prices for one and two bedroom flats are now cooling off.
“With recent figures from the Council of Mortgage Lenders revealing an increase in first time buyer loans and a decrease in buy-to-let loans in the last quarter of 2016, this could also demonstrate that the first time buyer market is strengthening. If this trend continues, this is good news for first time buyers as they appear to have less competition from buy-to-let investors, and selling prices won’t be racing ahead of their ability to save for a deposit.
“We are aware of how challenging it can be for first time buyers to save up a deposit to get on the property market, which is why we have launched a special prize draw where one first time buyer can win £5,000 towards their deposit. Visit espc.com for more information.”
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