Price of one-bedroom flat tops £200,000 in Edinburgh

The average price of a one-bedroom flat in three parts of Edinburgh has risen above £200,000 for the first time.

The price of small apartments in Polwarth, Shandon and Tollcross rose by 17.4% to an average £202,440, according to new research by the ESPC.

And there's more tough news for first-time buyers in these areas - the buyers of these properties paid the highest over home-report valuation (12.1%) to entice sellers to accept their offers.

These properties were also among the quickest to go under offer, with offers being accepted within 13 days for half of those sold between this April and June.

However, there has been an encouraging rise in the number of homes being put up for sale across east central Scotland has been reported.

Report

The ESPC report says that there were 3.2% more properties which came to market in the area between April and June this year, compared to the same quarter in 2017.

Meanwhile, average selling prices in east central Scotland increased by 4.9% to £241,149 in this period.

In east central Scotland, three-bedroom houses in South Queensferry and Dalmeny recorded the largest year-on-year jump in prices by a typical 17.6% to £239,401.

ESPC also reports that the median time to sell across east central Scotland in the second quarter of 2018 was one day slower compared with the same period in 2017 - with half of all properties going under offer within 17 days, and within 16 days in Edinburgh.

The number of properties sold across east central Scotland over the last three months decreased by 6.3% annually, which ESPC says is more of a reflection of the decrease of properties coming to market in recent years rather than a fall in buyer demand.

Analysis

ESPC’s business analyst Maria Botha-Lopez said: “A shortage of properties coming to market has been a key pressure point for the residential housing market in Edinburgh, the Lothians and Fife in recent years, so a positive upswing in the number of properties being listed reported by ESPC is an encouraging sign for buyers and those looking to take their next step on the property ladder.

“Sustainable increases in average selling prices which don’t tip the scales of affordability for qualified buyers are also a positive sign, as this inspires confidence in both lending institutions and potential buyers for the purchase of their next home.

“Additionally, the new tax relief for first-time buyers came into effect on June 30, whereby properties up to £175,000 will fall under the zero-rated Land and Buildings Transaction Tax threshold for this group who will pay no LBTT for their purchase under this amount. Just under 40% of properties sold for under £175,000 in the last quarter across east central Scotland.”

Edinburgh property experts