ESPC: Shortage of properties driving up Edinburgh house prices

Maria Botha-Lopez

The average selling price for one-bedroom flats in Polwarth, Shandon and Tollcross has risen by 22.3 per cent to £200,965 in the last three months, up from £164,285 for the same period last year.

Similarly, one bedroom flats in the Dalry and Gorgie areas increased by 19.9 per cent to £143,162 over the last three months, compared with £119,442 during the same period last year.

One bedroom flats in Dalry and Gorgie also sold the fastest – with an average time to sell of 13 days, demonstrating how in-demand flats are in Edinburgh.

With the number of new homes being brought to market decreasing by 8.3 per cent annually, this shortage is continuing to place demand on one- and two-bedroom flats.

Two-bedroom flats in the New Town and West End increased by 19.2 per cent to £425,655 over the last three months, and the area showing the largest increase in average selling prices is Stockbridge, Comely Bank and Canonmills, with the average selling price of a two bedroom flat increasing by 25.4 per cent to £289,235 over the last three months, year-on-year.

However, there is an indication that the rush to buy is easing off, as the percent of properties going under offer within 14 days dropped by 6.8% year-on-year to 37.7%. The current median selling time in east central Scotland is 22 days, the same as it was at this point last year. And for Edinburgh, the median time to selling time is 19 days over the last three months – which is similar to last year.

ESPC’s business analyst Maria Botha-Lopez said: “We experienced subdued activity in the east central Scotland market in February and March, partly down to the bad weather, and while there has been some improvement in April in the number of new homes listed, the number of properties listed decreased by 8.3% annually. This is having an effect on how quickly properties are selling, and the demand for one and two bedroom flats, as well as good family homes, in Edinburgh. The market is strong, and demand is there, so this could be a good time for those who are thinking of selling their homes to do so.

“Outside of Edinburgh the average selling price increases are not quite so pronounced. East Lothian experienced a modest 1.1% increase year-on-year, West Lothian experienced a 3.2% increase and Midlothian 12.7%. So it may be worth looking outside of Edinburgh when house-hunting.”