So, we’re finally into the year of Brexit (maybe, possibly, possibly not…) What will this mean for the residential property market in Edinburgh and the Lothians?
Edinburgh Property Market
There was a fear at the tail end of last year that the market may prove sluggish early on this year. Sellers and buyers might choose to sit tight and see what shakes out of the Brexit negotiations and subsequent withdrawal on 29th March.
Well, I’m delighted to report that demand still appears to be strong across the market. Combined with the usual dearth of supply at this time of the year, high prices and closing dates are being achieved.
Buyers seem to be taking advantage of favourable borrowing rates on offer just now. We’ve noted lots of viewing activity, both at the traditional ‘open’ viewings on a Sunday and many enquiries asking for specific appointment times too. There seems to be an increase in the number of buyers offering ‘subject to sale’ too. Whilst a ‘clean’ offer is almost always going to be more attractive to a seller, most are now not being put off by those parties who still have properties to sell. It all comes down to individual circumstances.
The Bank Of England pegged interest rates at 0.75% at their December meeting and have stated that it’s unlikely to rise beyond 1.5% over the course of the next three years. This forecast is based on the assumption that the Government can secure a ‘smooth exit’ from the European Union. Watch this space!
It may be that the market will stall slightly as we get closer to the end of March, but Edinburgh and the Lothians has always proved to be fairly resilient in times of economic and political uncertainty and I expect that properties will continue to sell well.
Head of Estate Agency