First time buyer flats in Edinburgh remain in high demand as number of sellers in east central region rises

In east central Scotland, there was an 8 per cent increase in sales volume compared to last year, while in Edinburgh there was a 12.9 per cent increase.

Between April and May 2019, the average selling price of properties in east central Scotland was £245,208 compared to £235,954 last year, which was a 3.9 per cent increase. In Edinburgh, the average selling price during this price rose by 1.9 per cent to £261,713.

Within the capital, one bedroom flats in Abbeyhill and Meadowbank saw the biggest increase in average selling price, rising by 16.6 per cent to £171,223. One bedroom flats in Polwarth, Shandon and Tollcross saw the biggest decrease in selling prices, dropping by 19.6 per cent to £161,943. This is largely due to a greater proportion of higher value homes being sold last year. Properties in these areas still achieved 107.2 per cent of their Home Report valuation on average.

Outwith the capital, from February to April 2019, properties in West Lothian saw a significant increase in average selling prices, rising by 16.9 per cent to £227,111. East Lothian properties also saw a 12.3 per cent increase in average selling prices, while the average selling price of Dunfermline properties increased by 6.4 per cent. Properties in the Scottish Borders saw a 5.1 per cent decrease in average selling prices – this is due to a greater proportion of larger homes being sold last year.

The median time to sell in east central Scotland was 26 days during these three months, which was four days slower than last year. In Edinburgh, the median selling time was 22 days, which was three days slower than last year. One bedroom flats in Abbeyhill and Meadowbank boasted the shortest selling time of 13 days, closely followed by one bedroom flats in Leith Walk, Easter Road, Pilrig and Bonnington with a median selling time of 15 days.

One bedroom flats in Abbeyhill and Meadowbank also achieved 109.4 per cent of Home Report valuation on average, which was the highest of any property type. Again, this property type was followed by one bedroom flats in Leith Walk, Easter Road, Pilrig and Bonnington which achieved 107.6 per cent of Home Report valuation on average.

The top selling property type over the last three months was two bedroom flats in Leith, followed by one bedroom flats in Leith and three bedroom houses in Dunfermline.

Jamie Fraser-Davidson, business analyst at ESPC, said: “Over the past three months, we have seen another increase in average selling prices compared to last year. We have also seen a significant increase in sales volume which is a result of the increase in properties coming to market over recent months.

“While we have seen a slight increase in the number of homes coming to market over the last three months compared to last year, this increase is much smaller than in previous months. It is possible that the continuing uncertainty over Brexit is starting to affect seller confidence. However, the rising selling prices and sales volume indicates buyer demand is still reasonably strong.

“One bedroom flats in Abbeyhill and Meadowbank, as well as Leith Walk and the surrounding areas, achieved the shortest selling times and the highest percentages of Home Report valuation. This indicates that first time buyer homes in the city are still in high demand.”

Paul Hilton, CEO of ESPC, said: “The high demand for starter homes makes it tricky for first time buyers to purchase a property in the capital. Therefore, Nicola Sturgeon’s recent announcement of a new scheme to loan first time buyers up to £25,000 to boost their deposit is welcome news, as any policy to assist people get on the property ladder would be.

“However, this scheme won’t resolve the issue of the lack of housing stock available to meet the huge demand for homes in Edinburgh and the surrounding areas. Increased regulation of short-term lets has also been announced, which might reduce the number of short-term lets and demand from investors, making it easier for first time buyers to purchase a property, but it may still not be enough to satisfy the strong demand for homes in Edinburgh and the surrounding areas”