Podcast: Local property market update for Q1 2024

What's been happening in the local property market?

In this week's episode of the podcast, we're talking to Sofia Renshaw (Davidsons) and Ivan Ralph (Ralph Sayer) about the current market as well as property hotspots for first-time buyers, the most common concerns for sellers and some good news stories from recent buyers.

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Key Insights

What has been happening in the local property market?

The local property market has experienced an uptick in activity during the first quarter of 2024, with a notable increase in the number of transactions compared to the second half of the previous year. Despite initial concerns following a disruptive mini-budget and rising interest rates, there has been a resurgence in market confidence, with more buyers re-entering the market. The market has stabilized, with properties selling at reasonable prices, although not as inflated as they were 18 months ago. New build activity has also seen an increase, particularly in areas where open spaces are being developed into residential properties.

What are the common concerns for buyers & sellers?

Buyers and sellers share common concerns, albeit from different perspectives. Sellers were previously apprehensive about selling due to inflated market conditions, fearing they wouldn't be able to afford their next property. However, the current calmer market has eased these concerns, allowing sellers to confidently list their properties. Buyers, on the other hand, may be worried about finding suitable properties within their budget, especially amidst competitive bidding situations and concerns about future market trends.

Where are the local property hotspots?

Midlothian and areas with good transport links and green spaces are emerging as hotspots, particularly for first-time buyers and those looking to upsize. Additionally, areas with affordable pricing and eligibility for tax reliefs, such as Gorgie and Sighthill, remain popular among buyers.

What properties are in demand?

Properties with ample space, including gardens or open spaces, have seen increased demand, especially post-COVID. Flats with outdoor spaces are preferred, reflecting a shift in buyer priorities towards outdoor amenities. Additionally, properties with parking spaces are desirable. First-time buyers typically seek flats in affordable areas with access to amenities.

Is Spring the right time to sell?

Spring presents favorable conditions for sellers due to better natural lighting and the inclination for spring cleaning, making properties more appealing. However, the decision to sell depends on individual circumstances and market conditions. The current stable market suggests that spring is as good a time as any to list properties.

Is now a good time to buy?

With the market stabilizing and interest rates expected to decrease, now is considered a good time to buy. Waiting may not result in cost savings, as prices are not anticipated to drop significantly. Moreover, renting may become more expensive due to limited rental properties and landlords exiting the market.

Advice for buying-to-let

For those considering buying-to-let, the current market offers favorable conditions, with properties available at reasonable valuations. Despite recent legislative changes impacting landlords, there is still demand for rental properties, especially among students. Investing in buy-to-let properties now may yield positive returns, especially considering potential future demand.

What is the outlook for 2024?

The outlook for the property market in 2024 appears optimistic, with signs of a growing market trend. Expectations include decreasing interest rates, improving affordability, and a buoyant market in the second half of the year. Political factors, such as the upcoming general election, may influence housing policies and market dynamics, potentially impacting buyer sentiment. Overall, while the market may not reach the levels of frenzy seen previously, it is expected to remain stable and increasingly active.