One and two bedroom flats in popular parts of the Capital have seen prices soar with strong demand from first time buyers hoping to get on the property ladder.
Property experts ESPC said single-bedroom flats in Abbeyhill and Meadowbank have increased by 11.6 per cent over the past three months. Average selling prices in these areas were £167,564 between January and March, compared to £150,169 for the same period last year.
One-bedroom flats in Dalry, Gorgie, Slateford and Chesser were snapped up in the shortest time, with a median selling time of 15 days. They, along with flats at Abbeyhill and Meadowbank, also achieved the highest percentage of Home Report valuation at 108.1 per cent. Two bedroom flats in Morningside and Merchiston saw a rise of 10.2 per cent from £276,144 last year to £304,241 in the first three months of 2019.
David Marshall, operations director with Warners, said Brexit is not currently dampening the enthusiasm of home movers in the Capital.
He said: “It has been a very busy start to the year for Edinburgh’s property market, with house prices continuing to rise.
“While the number of homes for sale in Edinburgh today is roughly 25 per cent higher than a year ago, hot spots such as Abbeyhill and Meadowbank have been selling fast.
“These areas have been extremely popular with those looking to get onto the ladder.
“With buyer activity high and the number of homes for sale having improved, conditions are arguably healthier in the local market than they have been for a number of years.”
Three bedroom houses in Corstorphine, Clermiston, South Gyle and East Craigs saw the most significant increase in average selling prices compared to last year, rising by 16.7 per cent to £329,182.
Meanwhile three bedroom houses in Liberton and Gilmerton saw the biggest decrease in average selling prices compared to last year, dropping by 16.9 per cent to £222,580. From January to March 2019, the average selling price in Edinburgh rose to £255,280, which was a 2.1 per cent increase compared to last year.
The average selling price of properties in East Lothian increased by 10 per cent and prices in West Lothian rose by 8.9 per cent to £198,245.
The property type with the highest sales volume during this period was two bedroom flats in Leith, followed by one bedroom flats in Leith.
Jamie Fraser-Davidson, Business Analyst at ESPC, said: “Average selling prices are continuing to increase year-on-year, indicating that buyer confidence hasn’t been impacted significantly.
“In particular, it appears there is still strong demand for first time buyer flats in the Capital, with one bedroom flats in Dalry, Gorgie, Slateford and Chesser achieving both the shortest selling time, and the highest average percentage of Home Report valuation, along with one bedroom flats in Abbeyhill and Meadowbank.”
Alison Watson, deputy director of Shelter Scotland, said: “Rising house prices above the rate of inflation are bad news. They make housing even less affordable and push home ownership even more out of the reach of people on the lowest incomes.
“If we don’t want to return to the days of boom and bust, we need a housing market where prices are stable and where there is enough truly affordable housing, especially enough homes for social rent, to meet growing demand.”