Demand outstrips supply as property market boom continues in Capital

Housing prices are on the up as sales increase. Picture; Toby Williams
Housing prices are on the up as sales increase. Picture; Toby Williams
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Homes are flying off the market in less than two weeks as the city continues to enjoy a property boom.

Experts said buyers were desperate to snap up properties in “desirable” areas such as Haymarket, Marchmont and Abbeyhill.

Picture; Toby Williams

Picture; Toby Williams

It comes as a new Post Office Money report out today revealed homes were selling faster in Edinburgh than any other UK city, except Bristol.

And new statistics from the Registers of Scotland showed that 3334 sales were completed in the last three months – as £806.2 million exchanged hands.

Leading estate agents in the Capital said they were struggling to keep up with demand.

David Marshall, operations director with Warners Solicitors and Estate Agents, said: “Over the last 12 months market conditions have strongly favoured sellers.

“At Warners we’ve seen most properties that have come onto the market with us recently going under offer in three weeks or less.

“The main reason is that there is an excess of demand over supply, or in simple terms, there are more people looking to buy than there are people putting their homes on the market.

“As a result, most properties are attracting multiple notes of interest allowing sellers to set quick closing dates and achieve strong offers.

“Demand in Edinburgh has been strong across the board, with activity high among all demographics from first-time buyers to experienced investors.

“A number of factors make the city attractive.

“The city has a large student population, meaning rental demand is always high for investors, house price growth has been strong over the last year or two which always attracts buyers, and despite the upward shift in prices the city remains relatively affordable when compared with major cities like London, south of the Border.”

Maria Botha-Lopez, business analyst for ESPC, added: “Our analysis of the property market in Edinburgh reveals that the median time to sell is down to 21 days with the average time to sell being 43 days, which is 28 per cent faster than the same period last year.

“This faster selling time is indicative that Edinburgh is currently in a seller’s market, with a shortage of available properties for sale – the number of new homes brought to market between the months of July and September decreased by 9.4 per cent annually.

“The most cited barriers for selling is the availability of homes to move to, so this creates a market where the most desirable properties are being snapped up quickly due to high demand, and on average 74.5 per cent of sales in Edinburgh met or exceeded their Home Report valuation between July and September this year, compared with 60.9 per cent during the same period last year – this is one of the highest percentages we have seen for many years.

But John Willcock, head of mortgages at Post Office Money, forecast the market would slowdown in the final months of this year, with economic uncertainty adding to the current pressures faced across the market.