GOOD news could be on the horizon for Edinburgh’s beleaguered buyers as the capital’s property market begins to show tentative signs of becoming more balanced.
New findings from Warners Solicitors & Estate Agents show a small chink of light for buyers, with premiums being paid over the Home Report valuation starting to dip.
In the three months to end April 2018, the average premium paid to secure a property stood at 6.5% – a 0.8% drop from last year (7.3%).
This is the first time since 2014 that the percentage has fallen on an annual basis, showing favourable signs for property purchasers, including first-time buyers.
Although the average first-time buyer will still expect to pay around £10,000 on top of their deposit to secure a typical property, the dip should come as positive news to those looking to get onto the property ladder.
David Marshall, Operations Director with Warners, explained: “Take the example of a one-bedroom flat in Abbeyhill and Meadowbank, areas that are typically popular with first-time buyers.
“The latest ESPC figures show that the average selling price of this type of property stands at £150,169.
“The average premium paid over the Home Report valuation stands at 6.5% which means that you would need to have an extra £9,761 on hand in addition to your deposit and fees if you wanted to secure the property.
“This is still a significant sum but, if premiums were to continue to inch downwards then we could begin to see some relief for those looking to purchase their first home.”
However despite the dip in premiums and recently reported 3.1% fall in house prices across the UK, the Edinburgh market is still characterised by excess demand.
According to Edinburgh’s leading estate agents, there is still a lack of properties coming to market, meaning sellers in the capital are unwilling to take the plunge and put their property up for sale.
David added: “Overall, the biggest problem that the market faces is that there is a limited supply of properties coming onto the market.
“In many cases sellers are unwilling to put their property onto the market until they find somewhere that they wish to buy but this can create something of a vicious circle with few new properties being put up for sale.
“Over time you would expect that, due to rising selling prices and quick selling times, more sellers will be tempted to take the plunge and put their own home on the market.
“In the short-term, however, the likelihood is that the balance of power will continue to favour sellers for much of 2018.”
Warners Solicitors and Estate Agents is one of Edinburgh’s leading estate agents, operating three property centres throughout the city.