The first quarter of 2016 has seen a fall in the length of time taken to sell a property in east central Scotland, according to the latest House Price Report from ESPC. The figures show that the median selling time dropped from 69 days in the first quarter last year to 41 days this year, a fall of 39.9%.
Over the same period there has also been 2.9% increase in the number of homes sold compared to the previous year.
However, ESPC figures also reveal that average property prices in east central Scotland over the first quarter are 10.5% lower than the previous year, taking the average price from £230,056 to £205,819.
In Edinburgh itself, average property prices have apparently fallen by 10.9% to £221,622, and prices have also dropped in East and West Lothian.
Interestingly however, areas containing many one or two bedroom flats for sale, such as Leith Walk and Newington, have seen prices rise rather than fall. According to ESPC, these properties attract first-time buyers and buyers seeking buy-to-let accommodation.
“These fluctuations in price can be attributed to the changes to property tax that the government has introduced over the last year,” commented ESPC’s business analyst Maria Botha-Lopez. “As a result of Land and Buildings Transaction Tax (LBTT) introduced in April 2015, average selling prices in the first quarter of 2015 were driven up by larger than normal volumes of high-end properties, with people wishing to buy before new tax rates came into place.”
“Similarly, a surge of sales of one and two bedroom properties can be attributed to the new 3% tax on the total value of second-homes over £40,000, which came into effect on 1st April, with the aim of cooling the buy-to-let market,” she added. “It will be interesting to see whether the effect of the second homes tax on the buy-to-let market results in increased rents, which could make it harder for first time buyers to save for a deposit.”
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