We’ve taken a look at the current state of the Edinburgh property market and it’s good news for first time buyers, with now being the perfect time to purchase your 1 or 2-bedroom flat.
There’s even better news for those looking to sell their family home, in particular, with 3-bedroom homes seeing large price rises in many areas of Edinburgh.
Are you a first time buyer looking to get on the Edinburgh property ladder?
It’s handy to know that when comparing average selling prices of the last three months compared to the same period last year, the general trend has shown prices have increased by 4% on average in Edinburgh.
3-bedroom family home prices see large rise
Prices have seen a rise in the last year with 3-bedroom properties in Silverknowes and Blackhall increasing by 26.7%. The increase in demand for 3-bedroom homes means that there will be less competition for smaller-style properties, your 1 and 2-bedroom flats, which in turn, could make it easier for first time buyers to get their foot on the property ladder.
These changes can be attributed to a “cooling off” of the buy-to-let frenzy seen in the last few years with the Scottish Government introducing changes to previous stamp duty tax, now known as the Land Building Transaction Tax (LBTT) and also the introduction of a 3% supplementary tax on second homes known as the Additional Dwelling Supplement (ADS). For more information on land tax, click here.
With the further costs factored in for buy-to-let investors brought on by the additional dwelling supplement of 3% of the purchase price, the number of buy-to-let loans obtained in the last quarter of 2016 has decreased.
But the number of first time buyer loans issued are on the rise and with the lower level of competition at this end of the market from fewer buy to let investors, the average prices for one and two-bedroom flats doesn’t look set to dramatically increase.
This is hopefully a bit of positive news, meaning more people can better plan their savings and budget for their deposit and legal costs on that first flat purchase.
PIC CREDIT: ESPC
Looking to sell Edinburgh property?
The first half of the year is typically the best time for first time buyers looking for 1 and 2-bedroom flats with more available property-stock hitting the market for sale just after the Christmas and New Year holiday period.
Recent selling prices indicate that if you have a 3-bedroom house in the city of Edinburgh, then now could be the perfect time to sell, as the Spring-time market in Edinburgh – the months of March, April and May – are the most active for buyers.
The trend for increased prices on 3-bedroom houses continues in other areas of Edinburgh, with South Queensferry seeing a rise of 25.4%; Currie and Balerno having a 16% increase and areas in the west of Edinburgh such as Corstorphine and Clermiston seeing price rises of 16.8%.
Why the big rise for 3-bedroom family-style homes?
This comes as a result of the lower number of available property stock in East-Central Scotland, statistics show a decrease of 4.9% fewer properties sold this past year and 6% fewer new listings brought to the market.
The high demand from buyers and the low supply of available stock on the open market results in the average sale price in East-Central Scotland rising by 5.3%. This is excellent news for property sellers, as it means that we are now in a seller’s market.
To put some of the price increases in perspective, selling a 3-bedroom house in Corstorphine in 2016 compared to 2017:
2016 average selling prices being £260,000 compared to 2017, where the average selling price for a three-bedroom in this area is now £303,000.
A 3-bedroom house in South Queensferry, last year the average selling price was £183,000, would now set a buyer back around £230,000.
In summary, if you have a 3-bedroom house in Edinburgh and you have been thinking of selling, now is the time! Contact VMH Solicitors to discuss your property purchase, as we sell fantastic family homes!
Are you looking to buy a 3-bedroom house?
With all the talk of price increases for 3-bedroom houses in Edinburgh, what should you do if you’re looking to move up the property ladder from your 1 or 2-bedroom flat to a 3-bedroom House?
Although, we are in a seller’s market just now and it seems the prices of 3-bedroom houses have skyrocketed throughout all of Edinburgh, it could be worth considering different districts of the city to find more affordable options.
The areas of Liberton and Gilmerton have seen a very small increase in the average selling prices of 3-bedroom houses, with an average increase of 1.1 per cent. Being on the south-end of Edinburgh and in close proximity of The Royal Infirmary, this area is due to see an increase in activity and growth and would be a great location to look at moving to.
What about moving out of the Edinburgh city limits? Buyers may want to look at properties in Midlothian, as house prices in this area have increased, but by a reasonable level of 2.1%, meaning that it won’t break the bank, but there is still improvement and growth in the area and this is great for investment purposes.
Moving to Midlothian has been a desirable option for buyers since the market crash in 2008/2009, as the average sale price of property in Midlothian is currently £173,857 and with Edinburgh’s great transport links, it may be a better option than buying property closer to the city centre.
For more information about buying property outside of Edinburgh, check our commuting guide here.
VMH is one of Edinburgh’s most respected estate agents and property solicitors. We specialise in selling family homes. Looking to sell? Contact us here today.
Figures for this blog have been taken from this ESPC House Price Report (February 2017).