ESPC House Price Report April 2015

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Summary

  • The number of homes sold in East Central Scotland between February and April of 2015 rose by 16% annually.
  • The average selling price in East Central Scotland rose by 18% between February and April of this year, compared with the same time period in 2014.
  • The percentage of sales achieving the Home Report valuation rose from 46% between February and April of 2014 to 51% in 2015.
  • The number of new homes brought to market between the months of February and April has increased by 3% annually, the smallest increase in the past year.

Full Report

Figures released by ESPC for the three month period between February and April of 2015 show that average house prices and volume of sales for East Central Scotland continue to grow year on year (YOY), with the number of homes sold increasing by 16% and the average selling price increasing by 18% to £224,177. Properties in the City Centre of Edinburgh, and two bedroom flats in the Marchmont / Bruntsfield areas saw the sharpest annual increases in average selling prices at 26%.

With the introduction of Land and Buildings Transaction Tax (LBTT) on 1st April 2015, replacing Stamp Duty, January 2015 saw a spike in percentage of properties over £300,000 coming on to the market, and a similar spike in sales for the month of March 2015 to take advantage of the lower tax bill at this end of the market. The percentages of sales and registrations of properties over £300,000 in April are now returning to 2014 levels. The increase in sales for properties over £300,000 contributed to driving up the average price for Edinburgh to £267,144 for the month of March 2015. With the ratio of properties over £300,000 returning to normal levels, the average monthly property price for Edinburgh for the month of April 2015 is £226,144, a 5.7% increase compared to the previous year. Going forward, we shall see if there is an increase in movement of more affordable properties under £145,000 that will now fall under the nil rate tax band, and likewise those under £333,000 that will benefit from a lower tax bill.

The median selling time in East Central Scotland is down by 9% compared to the same three-month period 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 46% a year ago to 51% today.

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

“Market conditions are more favourable for sellers than has been the case for a number of years, and this is reflected in the percentage of sales where Home Report valuation is achieved, and in quicker selling times. Ideally, an equal balance between properties brought to the market verses those sold is a good stabiliser for the economy, with a healthy balance allowing both buyers and sellers to benefit from steady movement up and down the ladder.”

With regards to the recent General Election, Paul Hilton commented;

“With the Conservatives winning by a majority vote in the recent election and confirmed as the new Government, in the short term we don’t anticipate the outcome will have a huge impact on the market.  However, it will be an interesting time to see which policies are taken forward and if they will affect the property landscape over longer term, especially in light of SNP winning 56 of the 59 seats available, there will be a push for further devolved powers for Scotland.”

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