Edinburgh’s property market is enjoying its strongest conditions since the downturn in 2008, according to the Capital’s leading property experts.
Warners Solicitors & Estate Agents’ latest Market Update for August 2016 shows that the property market has bounced back, with properties remaining on the market for less time and a rise in sales achieving prices beyond Home Report valuations.
David Marshall, Operations Director, said: “For property sellers, 2016 has seen the strongest conditions in Edinburgh since the downturn in 2008 and as we head towards the end of the year there appears to be little sign of things slowing down.
“Selling times continue to shorten and the premiums that properties are achieving over Home Report valuation are rising.
“The picture in the local market has been very similar to that which we have seen over the last 18 months. The number of people looking to buy is exceeding the number of homes for sale and as a result, the balance of power in the market lies firmly in favour of sellers at present.
“At Warners, the properties we advertise are spending an average of less than three weeks on the market before going under offer. Although there are always exceptions, in the majority of cases, properties coming onto the market just now are attracting multiple notes of interest.
“This allows sellers to set a closing date where buyers will be motivated to submit their best offer and as a result in most cases properties are achieving prices that are equal to or above their Home Report valuation. This has a circular effect on the market where sellers can then buy back into the market at a faster turnaround than had been possible.”
He added: “Brexit is on the mind of many buyers and sellers, however, with the downturn of the pound, it made Edinburgh a more attractive prospect to overseas investors.
“As we move forward and the details of the UK’s exit from the UK are thrashed out, and Brexit starts to dominate the headlines again, we would expect to see some decline in activity due to the associated uncertainty that this may cause. Given the current strength of the market however, a cooling in demand may be no bad thing as it will allow inflation across the city to ease back to levels that are more sustainable.”
The view that LBTT changes and Brexit have not hampered the strong buy to let market has also been echoed by one of Edinburgh’s leading letting agents.
Andrew Whitmey, Director with Umega Lettings, said: “We anticipated that investors might be put off in the wake of Brexit and the leave vote, however we actually seen a 40% increase in enquiries from overseas investors looking to take advantage of the weaker pound.”
The Warners Market Report for August, which includes updates and analysis on the impact of interest rate cuts, buy to let, average rent levels, property investment and Brexit, is available here.