Edinburgh property prices continue to offer value for money, according to data released in December.
2016 was a turbulent year for property prices throughout the UK and especially, Scotland. Noticeably, the biggest area of uncertainty came post Brexit.
However, nearing the end of the year, property prices began to stabilise and ‘normality’ resumed – if only the property market was as simple as that.
One notable fact which is hard to ignore is the vast difference in property prices which occur throughout the UK. For example, if you would like to live in the capital city of either England or Scotland, you are most likely going to be paying a considerable difference in price for location, bedrooms and amenities.
But what exactly does your money get you?
Where job opportunities are good and the economy is at its most vibrant, it is no big secret that moving to capital cities are very highly sought after. Let’s look at the difference between living in Edinburgh and London.
Research suggests that the average UK house price stood at £205,937 in 2016. Additionally, the average property price in Scotland stood at £142,895. Over £60,000 cheaper than the UK average.
That is quite some difference in price. But let’s hone in on Edinburgh and London specifically.
As we can tell from the graph, London is by far the most expensive place to purchase a property, with the average price highlighted as being £473,073. Edinburgh on the other hand has been recorded at £231,103.
Okay, so it is around £90,000 more than the average property price in Scotland; around £25,000 more expensive than the average property price in the whole of the UK; BUT it is still around £250,000 cheaper than London. That is a quarter of a million pound!
So now that we know there is quite a large difference in property prices between London and Edinburgh, let’s go back to what we asked before: ‘What exactly does that get you?’
Let’s find out.
The average price for a property in Edinburgh will offer you something like this property: 13 Abercorn Road. At the lower end of the average price, this £215,000 property boasts two bedrooms and is located in Willowbrae – a quiet residential location lying just to the east of Edinburgh’s city centre.
At the top end of the scale you will find something like 4/1 North Forth Street, Edinburgh. Valued at £270,000 this property is a 3-bedroom upper flat located in the vibrant community of Leith. Again, just touching the heart of Edinburgh city centre.
Both these properties are in good locations, just outwith the city centre, consisting of double bedrooms, living-rooms, kitchens, bathrooms and local amenities. The list goes on.
Let’s see if it is fair and how it compares to London.
Our research suggests that it is incredibly difficult to source a property in London for around £230,000. At best, the properties available are either shared, 1 or 2 bedroom max and outwith London with you having to commute from places such as Croyden. The properties are also on a much smaller scale compared to Edinburgh, with some even asking for over £200,000 to be above local shops and businesses.
Let’s switch things up a little and see what your money would buy you in London compared to Edinburgh with their yearly average property price.
Upon initial inspection it is quite clear that there are a lot more options now available in London. The bedrooms have increased to around 2 and 3 (with the occasional 4), the properties appear to be much closer to the city and the sheer size and scale of them is bigger than what we previously looked at. It certainly does fit in with the label of being an average property for the average property price tag.
If we apply this search to Edinburgh we can see there is much more on offer. Both 2 East Bay and 38 Biggar Road are 5-bedroom properties, detached and in very desirable, quiet and highly sought after areas. Compared to the average London properties these are much more spacious, offer more rooms, gardens, local amenities, on-property parking and original features.
Our research here concludes you can get much more for your money purchasing a property in Edinburgh as opposed to London – be it at our average price or theirs!
But does this trend look like it is set to continue in 2017?
As per the norm in property, it can be difficult to forecast. London’s annual house price growth for 2016 was 3.7%, below the UK average of 4.5% for the first time since 2008. However, experts are claiming between a 1% – 4% increase in house price forecasts for 2017.
Bearing that in mind, it is clear there is a huge gap between London and Edinburgh when it comes to property prices, and it is a gap which is sure to remain for the forseeable future.