The average price of a property in the City of Edinburgh has soared by 26% in the past year, found property portal ESPC.
Data from the East Central Scotland firm indicates positive year-on-year growth in the housing market, with the amount of homes sold rising by 16% and the average selling price increasing by 18% to £224,177.
Property Prices in Edinburgh Surge by 26%
Houses in the Scottish capital’s city centre, and two-bedroom flats in Marchmont and Bruntsfield have experienced the sharpest annual rise in average selling prices at 26%.
The research revealed that the average property price in the City of Edinburgh increased by 22% compared to the first quarter (Q1) of 2014. Furthermore, Dunfermline saw a strong average price rise of 20% year-on-year.
However, not all regions experienced price increases, with the average in Midlothian falling by 2% to a median of £158,505 in Q1 2015.
The amount of properties put onto the market between February and April rose by 3% annually, the smallest growth in the past 12 months.
The number of sales achieving their valuation price in the same period increased from 46% last year to 51% in April 2015.
CEO of ESPC, Paul Hilton, explains the data in relation to recent tax changes: “Since the introduction of Land and Buildings Transaction Tax [LBTT] on 1st April 2015, replacing Stamp Duty, we saw a spike in the amount of properties over £300,000 coming onto the market at the start of 2015, and a similar spike in sales for the month of March as people took advantage of the lower tax bill at this end of the market.
“However, with the ratio of properties over £300,000 returning to normal levels, the average monthly property price for Edinburgh is now £226,144, which still represents a 5.7% increase compared to the previous year.
“Going forward, we shall see if there is an increase in movement of more affordable properties under £145,000 that will now fall under the nil rate tax band, and likewise those under £333,000 that will benefit from a lower tax bill.
Hilton continues: “Market conditions are more favourable for sellers than has been the case for a number of years, and this is reflected in the increase in percentage of sales where home report valuation is achieved and in quicker selling times.
“Ideally, an equal balance between properties brought to the market versus those sold is a good stabiliser for the economy, with a healthy balance allowing both buyers and sellers to benefit from steady movement up and down the ladder.”
Hilton concludes: “With the Conservatives winning by a majority vote in the recent election and confirmed as the new Government, in the short term we don’t anticipate the outcome will have a huge impact on the market in Edinburgh, Fife and the Lothians.
“However, it will be an interesting time to see which policies are taken forward and if they will affect the property landscape over the longer term, especially in light of the SNP winning 56 of the 59 seats available, there will be a push for further devolved powers for Scotland.”1
1 http://www.propertyreporter.co.uk/property/edinburgh-house-prices-leap-26.html