ESPC House Price Report September 2016
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Key points
- The average selling price in east central Scotland between July and September of this year has increased by 4.7% when compared with the same period last year.
- The number of homes sold in east central Scotland between July and September of 2016 decreased by 10.7% annually.
- The number of new homes brought to market between the months of July and September decreased by 9.4% annually.
- 83.8% of properties listed between July and September 2016 were marketed as ‘offers over’, compared with 69.4% in 2015.
- The percentage of sales achieving or exceeding their Home Report valuation rose from 60.9% between July and September of 2015 to 68.0% in 2016. In Edinburgh, 74.5% of sales met or exceeded their Home Report valuation in the current reporting period.
Prices in South Queensferry rising as the new crossing nears completion
Houses in South Queensferry have shown one of the largest increases in average house prices over the last three months, according to the latest analysis by ESPC, the leading property experts in east central Scotland.
Selling prices increased by 15.4% for three bedroom houses in South Queensferry and Dalmeny during this period, while two and four bedroom houses have also shown a rise in selling prices. This indicates that the area is increasing in popularity as a commuter town for families, ahead of the new Queensferry Crossing anticipated to open in May 2017.
Elsewhere in the Edinburgh region, three bedrooms houses in the Currie and Juniper Green areas rose by 21.4%, as the area continues to be a popular place for its quiet, village feel and community spirit. Average prices for two bedroom flats in the New Town and West End of Edinburgh increased by 13.6% over the last three months, while one bedroom flats in the Leith Walk area are continuing to be ‘best-sellers’, as they have sold in greatest volume and have seen a 10.5% increase in average house prices.
Now that three months have passed since the outcome of the EU referendum, we are seeing that average selling prices across east central Scotland and Edinburgh are continuing to rise year-on-year, despite predictions.
ESPC’s business analyst Maria Botha-Lopez said: “Average selling prices in Edinburgh and east central Scotland are continuing to rise, and we have seen houses in South Queensferry show one of the largest increases. This could be an early effect of the Queensferry Crossing, offering greater transport links and an easier commute.
“While we are seeing this increase in prices, there continues to be an annual drop in property sales and new listings. This reflects the ongoing shortage of properties on the market, rather than a decrease in buyer demand, and indicates we are still in this seller’s market. It is also too early to tell what the impact will be of Theresa May’s announcement of a date to trigger article 50 by March.
“Various organisations, such as Homes for Scotland The Scottish Property Federation and the Royal Institute of Chartered Surveyors, cite additional pressures on the housing market caused by the higher Land and Buildings Transaction Tax (LBTT) rates on properties over £325,000, as well as the 3% second homes tax. Home movers, sellers and buyers are facing these new tax pressures and might be delaying or even reconsidering their options when it comes to moving home.
“We carried out a recent survey with our solicitor estate agents to find out their views and the most cited barrier to selling is the availability of homes to move to, while the most cited barrier for buyers is the extra costs of LBTT and the competition when it comes to putting in an offer.”
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