The property market in East Central Scotland saw prices rise by almost 4% in the three months to April with sales also up, rising 8% year on year, the latest figures show.
The buoyant market took the average selling price to £245,208, a rise of 3.9%, while the number of homes being put up for sale increased by 3% compared to the same period in 2018.
The data from Edinburgh Solicitors Property Centre (ESPC) also shows that the median time to sell in east central Scotland was 26 days during these three months, which was four days slower than last year.
Over the last three months there was a 3% year on year increase in the number of properties coming to market in east central Scotland and a 1.1% increase in Edinburgh. In east central Scotland, there was an 8% increase in sales volume compared to last year, while in Edinburgh there was a 12.9% increase.
In Edinburgh, the average selling price increased by 1.9% to £261,713. One bedroom flats in Abbeyhill and Meadowbank recorded the biggest increase in average selling price, rising by 16.6% to £171,223.
However, one bedroom flats in Polwarth, Shandon and Tollcross saw prices fall by 19.6% to £161,943. ESPC said that this was largely due to a greater proportion of higher value homes being sold last year. Properties in these areas still achieved 107.2% of their Home Report valuation on average.
Outside Edinburgh, properties in West Lothian saw a significant increase in average selling prices, rising by 16.9% to £227,111 and in East Lothian prices increased by 12.3%. Elsewhere prices increased by 6.4% in Dunfermline and by but fell by 5.1% in the Scottish Borders, largely due to a greater proportion of larger homes being sold last year.
The top selling property type over the three months was two bedroom flats in Leith, followed by one bedroom flats in Leith and three bedroom houses in Dunfermline.
‘Over the past three months, we have seen another steady 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,’ said Jamie Fraser-Davidson, business analyst at ESPC.
‘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,’ he explained.
‘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,’ he added.
Paul Hilton, ESPC chief executive officer, pointed out that the high demand for starter homes makes it tricky for first time buyers to purchase a property in the capital. ‘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,’ he said.
‘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,’ he added.