08 Feb Shortage of housing in Scotland continues to drive up prices
According to the latest residential property market Scotland survey published by RICS (Royal Institution of Chartered Surveyors) there is a continued shortage of properties coming onto the market in Scotland, which is continuing to push up house prices. This means that the start of 2018 is following the same trend as much of the 2nd half of 2017.
The lack of residential housing coming onto the market, continues to hinder activity and has shown no signs of turning. In January, at -17%, the net balance was at its weakest since May 2017 and in-fact points to further deterioration of the number of new listings since the beginning of 2017.
According to the ESPC’s latest house price report, east central Scotland saw the average house price in the last quarter of 2017 increase by 7.3% to £234,757, compared to the previous year. From October to December last year, the average sale price in Edinburgh increased by 9.5% year on year to £253,598.
The increased average property sale price in east central Scotland could be associated with factors such as the 3.1% decrease in properties coming on to the market and the 2.5% fall in the number of homes being sold in the last quarter.
Competition for Buyers
Due to shortage of homes available, buyers are in competition with one another, which sees sellers achieving an average of 9.3% over the asking price. This is a 7.1% increase when comparing the same period in 2016 across east central Scotland.
According to the ESPC, the report revealed that nearly 90% of properties going onto the market were marketed as ‘offers over’ which is a 10% increase since 2016.
Inevitably, given the string competition between buyers, the average selling time in east central Scotland has decreased from 25 days in the last quarter of 2016 vs the same period in 2017. Looking at selling times in Edinburgh, these have dropped to 18 days, with one bed flats in Gorgie and Dalry dropping as low as 14 days, the same selling times as two bed flats in Portobello and Joppa.
Maria Botha-Lopez (Business Analyst for the ESPC) reported “This is indicative of the trend we have seen for some time, of a shortage of properties and increased demand, which drive up the average selling prices”.
In 2017 there were concerns that the effect of Brexit on the housing market would be negative, but it has appeared it hasn’t had as much of an impact on Scotland’s selling prices during 2017 as initially feared. Looking at the whole of 2017, East central Scotland’s average selling prices increase by 6.2% year on year and Edinburgh increase by 7% over the same period to £248,384
If you’re looking to get your selling your property in January, the first thing you’ll need is a Home Report. We are RICS Chartered Surveyors specialising in Home Reports across Scotland from as little as £85. Get in touch today to arrange a time to suit you. We offer early morning or evening and weekend appointments. Call us on 0131 608 0175 or email us at email@example.com