Increase in average selling prices as demand outstrips supply

Selling prices for homes in east central Scotland have increased by an average of 4.7 per cent between September and November 2015, compared with the same time last year, according to the latest figures released by ESPC.

While there was a surge in house prices at the start of the year, as a result of Land and Buildings Transaction Tax (LBTT), average house prices remained at a level compared with the same period in 2014.

Similarly, house prices in Edinburgh have seen a 7.1 per cent year on year increase in the period between September and November, following a drop in average prices since May this year. Again this is a result of LBTT, where there was a rush to sell properties before April 1st, when the new tax would be implemented.

ESPC business analyst Maria Botha-Lopez, said: “The number of new homes brought to market between the months of September and November increased modestly by 1.3 per cent annually, but with consistent growth in sales volumes, the number of active properties on the market continues to decrease, so this could be a good time for those thinking of selling, to bring their property to market.

“The demand for property is still outstripping supply, as we are seeing a 17.1 per cent year on year increase in the number of homes being sold, compared with the 1.3 per cent annual increase in properties brought to marker, and this sellers’ market is reflected in faster selling times. The average selling time is 36 days across the region, compared with 49 days during the same period last year.”

In Edinburgh, the areas showing the greatest increase in house prices is Polwarth, Shandon and Tollcross, for one bedroom flats, two bedroom flats in the Morningside and Merchiston area, and three bedroom houses in the South Queensferry and Dalmeny area.

Throughout the year there has also been large year on year increases in selling prices for two bedroom flats in Stockbridge and Comely Bank, but prices in this area have stabilised when compared with the same time period last year.

Key Findings