Little evidence of Article 50 impact on property market
The property market in Edinburgh and east central Scotland is showing little evidence of any impact from recent political changes, including the triggering of Article 50 and a possible second Scottish referendum, according to the latest house price report from ESPC.
Instead, in the first three months of 2017, there was a continuation of the general trends of the second half of last year where a shortage of properties available for sale has created a market that is in favour of the seller. As a result of this there has been an increase in average selling prices – up 5.7 per cent across east central Scotland to £217,455.
The average selling price in Edinburgh city centre is up by 11.6 per cent, in the New Town and West End average selling prices are up by 12.3 per cent, in Morningside and Merchiston it’s up by 18 per cent and 16 per cent in the Stockbridge area.
There has also been a 9.2 per cent decrease in the number of properties being sold, which is due to less availability of property rather than a lack of demand from buyers.
ESPC’s business analyst Maria Botha-Lopez said: “In the first quarter of 2017, the residential housing market across east central Scotland remained impervious to the uncertainties surrounding Brexit, the triggering of Article 50 and initial steps taken by the Scottish government to seek a second referendum on independence.
“As has been the case over the last year, we are in a seller’s market. This means higher average selling prices, a shorter time to sell, and a likelihood for the selling price to achieve or exceed the Home Report valuation, particularly for those selling highly sought after homes in areas with high buyer demand.
“However, it should be noted that while buyers can face fierce competition and the prospect of being outbid on properties in areas of high demand, it is worth considering areas within reasonable commuting distance where buyers can find more favourable prospects.”