Edinburgh property market struggling to keep up with buyer demand – ESPC

Edinburgh PRS stock

The property market in east central Scotland has seen a 5 per cent increase in the number of properties being sold over the last three months, the first sales increase since the beginning of 2016, according to the latest analysis from estate agents ESPC.

Similarly, the number of new homes brought to market between May and July 2017 increased by 2.2 per cent annually, which is the first increase reported since the start of the year.

However a lack of stock is still an issue, with many agents reporting that there are not enough properties on the market to satisfy buyer demand. Because of this lack of availability, ESPC said it is seeing faster selling times, with a median time of 15 days in Edinburgh, and with 87.5 per cent of properties in the city meeting or exceeding their Home Report valuation.

One bedroom flats in Dalry, Gorgie, Slateford and Chesser are showing the largest year-on-year increases in average selling prices across east central Scotland, up almost 20 per cent over the last three months. Further demonstrating the popularity of the area for first time buyers or buy-to-lets, these properties sell for 9.5 per cent above Home Report valuation on average, with a medium time to sell of 14 days.

Leith is also proving a very popular place to purchase a flat, the firm said. The types of properties that have been selling the most in this period have been one and two bedroom flats in Leith, according to its sales data.

Maria Botha-Lopez

Maria Botha-Lopez

ESPC’s business analyst Maria Botha-Lopez, said: “This is the first year-on-year increase in sales and properties listed that we’ve seen since the first quarter of 2016 when volumes were driven up by the second homes supplementary tax, which created a forestalling effect. Potential buyers brought forward their plans to purchase a new property due to this extra tax.

“While there is generally a slowdown in the market over the summer months, ESPC member firms for the most part expect listings, sales, selling prices and time to sell to remain roughly the same over the next three months.

“One and two bedrooms are in high demand, but again, a lack of stock is driving up the prices and making it more difficult for first time buyers to get a foot on the ladder. Anecdotally, agents are reporting that there are less one bedroom flats coming to the market because they are being kept on as rental properties.

“The Gorgie and Dalry area is showing the largest increase in average selling prices, and Abbeyhill and Meadowbank areas are also proving a popular place to buy a one bedroom flat, with a 17.1 per cent increase in average selling prices. With a one bedroom flat in Leith now selling for an average of £139,518, attention is now turning to up-and-coming areas in the city.”

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