Mixed feelings have been portrayed on the Edinburgh property market’s recent position. While, on the one hand, figures provided by Strutt & Parker have shown that premium property sales have successfully achieved yet another year of growth up to this January, it is also notable that the average sale price
With the ever-changing nature of the property market, it can be very hard for homeowners to keep abreast of the latest, trends, predictions and spot the most appropriate time to sell, or not to sell, their properties. Yet there are a number of key concepts which can be highlighted for
Mixed feelings have been portrayed on the Edinburgh property market’s recent position. While, on the one hand, figures provided by Strutt & Parker have shown that premium property sales have successfully achieved yet another year of growth up to this January, it is also notable that the average sale price of such properties did, in fact, fall markedly. 148 premium properties (of values above £300,000) were reported to be sold in Edinburgh over the course of January, which represented a nice increase from the figures last year, which came in at 131, which also built upon from the previous years of 136 for 2014, and 109 for 2013. In total, some 535 premium properties were sold across Scotland this January, which is a considerable increase from last year’s figures of 494 sales. Again, 5,330 traditional properties valued at less than £300,000 were also sold, which was, again a considerable increase on last year’s figure of 4,144. And while these two increases show an improved market for the purchase and sale of properties, suggesting a buoyant market sector, it has also been reported that the average house value for Scottish properties fell as low as £163,610, a reduction as opposed to last year’s figure of £166,682. In line with the falling value of Scottish properties, the average sale price of premium properties also fell, clocking in a £227,899 this year, as opposed to £236,696 last. Additionally, the share of the market which premium properties made up also fell, from 23.9% to 21.1% specifically. Yet, Strutt and Parker’s Blair Stewart stresses that this is nothing to be worries about, with the price drops only being of a marginal amount, while the considerable increase in the number of sales is very encouraging. Highlighting that the market for premium properties has actually enjoyed sustained growth over the last few years, Blair Stewart went on to comment that, “It has shown strength in the early months of 2016.”
With the ever-changing nature of the property market, it can be very hard for homeowners to keep abreast of the latest, trends, predictions and spot the most appropriate time to sell, or not to sell, their properties. Yet there are a number of key concepts which can be highlighted for homeowners who are presently trying to judge the market and if now is the “right time” to move on, or the right time to invest back into their property. House prices are already at record levels, which is something oft reported and monitored by both consumers and businesses alike. And while growth has clearly slowed down across the housing market, it is still predicted for house prices to continue to grow over the course of 2016 – a 4-6% increase has been predicted by Halifax, the UK’s largest mortgage lender, which can be attributed to the present housing shortage and expanding population. On the one hand, these facts make it sound like the perfect time to sell, yet, there are other things which homeowners are advised to consider. It is true that the mortgage lending market remains very active, however it has been noted that first-time buyers are having to wait longer and longer to get onto the property ladder due to requiring a far larger deposit before they can secure a loan. Whilst this may not seem to be directly affecting someone already on the property market, it is key to understand that the market for the sale of properties can only be as strong as the market for the purchasers of them – with it proving more difficult for people to raise the funds needed to buy housing, the demand (from those able to pay the rising house prices) is worryingly low. So, given the currently position, we are in a state where properties are perhaps at a very promising value for homeowners to cash in on their investments, yet, at the same time, unpromising in the sense that the value of a home may not be a price tag that the modern buyer can, in fact, afford to offer. This places homeowners in a position where it can be seen as a more effective measure to focus on making your properties more saleable through home improvements, both to prepare for the future, but also to bring in interest from those buyers who can actually afford the price tag.
