Demand for property in Edinburgh puts pressure on first time buyers

Statistics from property experts ESPC found that 83.9% of sales in the Capital met or exceeded their home report valuation over the last three months, and properties that were marketed as offers over achieved on average 9.5% over the asking the price. This is up from 7.5% during the same period last year.

Properties marketed at ‘fixed price’ tend to sell for around the advertised price. However, when it comes to ‘offers over’, this allows for many people to bid for the property, with the highest offer most often the price accepted. 86.1% of properties listed between March and May 2017 were marketed as ‘offers over’, up from 77.1% during the same period in 2016, meaning that there is less of an opportunity to find a fixed price property.

There has been an overall 6.7% decrease in the number of new homes brought to market, following the trend in decreasing stock seen over the last year. This year-on-year decline has led to continuing increase in selling prices as buyer demand continues to be strong.

One bedroom flats in Abbeyhill and Meadowbank and two bedroom flats in Leith, The Shore and Granton, have shown the largest year-on-year increases in average selling prices between March and May of 2017 (16.8% and 14.6% respectively). This indicates there is a continued demand for the types of property that are popular amongst first time buyers, particularly amid a decrease in new housing stock.

One-bedroom flats in Abbeyhill and Meadowbank have also shown the highest average percentage above the Home Report valuation.

ESPC business analyst Maria Botha-Lopez said: “In Edinburgh, buyers should consider that many properties are selling above Home Report valuation when they do their house search. So when saving for a deposit and other buying costs, they will also need to set aside extra funds if they wish to make an offer over the valuation, as this will not be covered by their lenders.”