The market in Edinburgh shows no sign of slowing down this year. If anything, successfully purchasing that 1st or subsequent property has become more challenging!
Levels of demand remain extremely high with supply levels restricted. As the market generally continues to strengthen more people looking to move up the property ladder look to try and secure that next home before bringing their own onto the market. The knock effect of that is a lack of available properties that traditionally 1st time buyers might look to secure, driving up demand for those on the market leading to rising prices.
Whilst in 2017 we thought the market was challenging with buyers being often expected to pay up to 10% over value, that has worsened with premium levels not uncommonly at 15 per cent + so far this year!
The 2018 Edinburgh property market is shaping up to be much the same as 2017. Ultimately, there is a chronic shortage of supply, especially at the lower end/entry level, with demand for traditional tenement flats in popular parts of the city far exceeding availability. Read Kevin’s initial 2018 Edinburgh property market prediction here.
2018 EDINBURGH PROPERTY MARKET UPDATE Q2
Unfortunately, the small amount of LBTT relief being offered to 1st time buyers will have no effect on their ability to compete in this market – and whilst the introduction of ADS has certainly produced extra income for the tax man – it has done little to dampen the enthusiasm of investor buyers.
It is, ultimately, difficult to see where any correction in the market will come from but a correction is required and will fundamentally come at some point. How severe that will be and when it will occur is impossible to know.
Best advice if you are looking to get onto the market is to set your budget, engage with a solicitor who is familiar with the market you are trying to get into and who has the time to advise on when to offer and how much. Act quickly when it comes to arranging a viewing and if offering, offer big and offer early!