Volume of residential property sales rising in Edinburgh, defying UK trends
Figures released by HMRC last week revealed a reduction in the number of property transactions this summer amidst uncertainty surrounding Brexit. According to the figures, in the UK the provisional seasonally adjusted volume of residential property transactions decreased by 8.5% between June 2019 and July 2019 and by 12.4% compared to July 2018.
Increasing sales volume in Edinburgh, the Lothians, Fife and the Borders
However, ESPC data reveals a different story about Edinburgh and the surrounding areas. From May to July 2019, the sales volume of residential properties in the Scottish capital rose by 9.5% compared to the previous year. In Edinburgh, the Lothians, Fife and the Borders, the sales volume increased by 8.2% year-on-year. Data from April to June 2019 show less marked increases in sales volume in Edinburgh, indicating an uplift in July.
Fewer properties coming to market
There has been a slowdown in the number of properties brought to market, with the number of new property listings in Edinburgh, the Lothians, Fife and the Borders down by 6.3% annually from May to July 2019. Within Edinburgh, the number of houses and flats coming to market dipped by 4.2% compared to last year.
Strong demand for property in Edinburgh and the surrounding areas
Claire Flynn from ESPC said: “In Edinburgh and the surrounding areas, we have seen residential property sales volumes increase compared to last year for a number of months now. This, along with rising selling prices, indicates demand for property in these areas is strong.
“We are seeing a slowdown in the number of properties brought to market in these areas. This suggest sellers are becoming more cautious, possibly due to ongoing political uncertainty surrounding Brexit. However, anecdotal evidence from firms suggests that many sellers are waiting to buy the right home before they sell, resulting in this slowdown.
“There appears to be less caution with buyers, with demand for property increasing as fewer properties come to market. If the strong demand for property continues, which we expect it to, it is likely sales volumes in Edinburgh and the surrounding areas will continue to rise, defying current UK trends.”
Jenna Spence, Operations Director at Neilsons Solicitors & Estate Agents, said: “There is no such thing as the ‘UK property market' - the UK is a patchwork of local markets each with its own dynamics.
“What matters the most is what is happening in your local immediate area that you are considering selling in. In Edinburgh and the surrounding areas, sales volume and sales prices continue to increase in 2019 due to huge buyer demand.
“The reason why the number of properties coming to market has decreased is because many sellers are not wishing to commit to selling their property until they find a suitable property to purchase and this reticence has led to property stock being substantially down compared to the same period last year.”
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