House prices continue to rise despite Brexit concerns

The average selling price in east central Scotland has increased by 6.2 per cent over the last three months, compared with the same time last year, while the average selling price in Edinburgh has increased by 7.7 per cent.

Some areas in Edinburgh have seen larger spikes than others, with two bedroom flats in Bellevue, Hillside and Broughton increasing by 20.7 per cent and one bedroom flats in the Leith area continuing to be popular, with a 14.4 per cent increase in average property prices. With a number of new businesses, student accommodation and a Starbucks opening up on Leith Walk, we are anticipating this area will continue to be popular.

Three bedroom houses in Currie, Balerno and Juniper Green seeing a 25.3 per cent increase in average house prices. However this increase could be attributed to a 14.3 per ent decrease in average house prices in the area during the same period last year.

In other regions of east central Scotland, average property prices in West Fife and Kinross have increased by 6 per cent year on year, however East Fife has seen a 6 per cent decrease. East Lothian and Midlothian are continuing to be popular places to buy, with increases in average prices.

We are continuing to see a drop in the number of homes being sold. Before the EU Referendum, we saw an almost 3 per cent dip in volumes when compared with last year. However over the past three months we have seen an 8.1 per cent decrease in sales volumes, and, for the number of properties being brought to market, a 10.6 per cent drop.

ESPC’s business analyst Maria Botha-Lopez, said: “With less properties being brought market we are continuing to see a demand for good quality homes for sale, and this is resulting in faster selling times (21 days on average, compared with 34 days during the same time period last year), and 83.2 per cent of properties being marketed as offers over.

“With two months of post-Brexit data now available, we do see a continued effect on volumes when comparing sales and new listings before and after the referendum on 23rd June. However the property market in east central Scotland continues to be robust, and we are still in a seller’s market, as has been the case over the last year.

“We also carried out a survey of our member firms to find out their thoughts on the property market over the last three months. They told us that while Brexit has had limited impact, the main reason buyers are not choosing to move home is that there is a shortage of housing stock. This could be a good time for those thinking about selling their property to do so now, as we are experiencing faster selling times and 71 per cent of properties achieving their home report valuation or above.”