Housing demand continues to outstrip supply in east and central Scotland

These figures, from the period of July to September 2015, indicate that demand is continuing to outstrip supply, and the market continues to be in favour of the seller.

Over the last several months the average selling price in east central Scotland has remained level. In the period between July and September this year, the average price increased by 1.5% compared with the same period in 2014.

Dunfermline has shown growth in average property prices over the last year, but average selling prices decreased by 2.3 per cent from July to September 2015 compared to the same time last year, suggesting that this sharp rise is now levelling out.

East Lothian and Midlothian are showing slight decreases in property prices with average property prices in West Lothian having increased by 9.4 per cent, compared with the same period last year.

ESPC’s business analyst Maria Botha-Lopez, said: “The number of homes selling in east central Scotland continues to grow year-on-year, as does the percent of homes achieving or exceeding their home report valuations, at 60.9 per cent.

“Properties marketed as offers over are now achieving an average of 6.5 per cent above the asking price, up from 3.8 per cent in 2013, and time to sell is shorter than last year.

“However, we continue to see less homes coming to market when compared with last year.”

Areas that are continuing to show strong growth include Dalry and Gorgie, Portobello and Joppa, and the Stockbridge and Comely Bank area, proving to be popular areas for purchasing two-bedroom flats, possibly in the buy-to-let market.

This time last year, the areas and property types that were showing the largest year-on-year increases in selling prices were three bedroom houses in Blackhall, Davidson’s Mains and Silverknowes, and South Queensferry and Dalmeny, which has now seen a 10.7 per cent decrease in average prices for a three bedroom house, potentially making the area more affordable for families.

Maria added: “The LBTT effect, which saw a sharp rise in high-end properties being brought to market at the start of the year, impacting average selling prices, appears to have tapered off. The distribution of properties across LBTT tax bands are similar when compared with last year.”