Lack of homes for sale makes east coast a seller’s market -ESPC

The latest market analysis from estate agents ESPC shows that the drought is driving up demand.

ESPC said 4.1 per cent more homes have been sold between May and July 2015, compared with the same period last year, while the number of new homes being brought to market decreased by 8.8 per cent annually, with 61.5 per cent achieving their Home Report valuation.

However, while the average selling price of properties across east central Scotland remained at almost the same level between May and July 2015 compared with the same period last year, some areas have seen a larger increase than others.

In Edinburgh, Dalry and Gorgie property prices are continuing to show strong growth with a 14.6 per cent increase in selling prices for one bedroom flats compared with the same period last year. This could indicate it is becoming a popular area for first time buyers and young professionals to get a foothold on the market. Meanwhile the Leith Walk area, which has been a popular area for first time buyers for some time, rose by 6.1 per cent and Meadowbank and Abbeyhill by 2.6 per cent.

Other areas in Edinburgh which are showing strong growth are Morningside and Merchiston. The average price of a two bedroom flat increased by 18.3 per cent between May and July 2015, compared with the same time last year.

Stockbridge and Comely Bank are continuing to grow, with a 10.7 per cent rise in average property prices for a two bedroom flat.

At the other end of the spectrum, average prices for a three bedroom house in Liberton and Gilmerton have decreased by 22 per cent compared with the same period last year. This could be attributed to increased competition for the number of new build family homes now available in the area as first time buyers are finding support under the Help to Buy scheme.

In comparison, the average selling price for all flats in Liberton and Gilmerton has increased by 22.8 per cent year on year.

The seaside areas of Portobello and Joppa have seen a 6.1 per cent decrease in house prices, and Currie, Balerno and Juniper Green have seen an 11.9 per cent decrease.

East Fife and Dunfermline are continuing to be popular places to buy a property, with up to 15.2 per cent growth in property prices.

Maria Botha-Lopez, ESPC’s business analyst said: “This month’s house price report shows that this is the second three month rolling period where we are seeing average selling prices at about the same level as they were this time last year. It appears that the short term effects of LBTT have tapered off, and it will be some time before we see the long term effect.

“While some parts of Edinburgh are showing increases in average selling prices, other areas are showing decreases, making these areas more affordable for first time buyers or home-movers. It highlights the impact that new builds and the Help to Buy scheme has had on the existing property market - when existing properties are competing with new builds, aided by government incentives like the Help to Buy scheme.

“The Bank of England’s recent announcement that interest rates will be kept at the 0.5 per cent base line is also a positive step for the Scottish property market.”