2016 has been a mixed year for property purchasers and sellers in Edinburgh and the Lothians. What are the current Edinburgh property market conditions? Some sellers have done very well in terms of attracting interest in their properties and achieving prices over their asking prices and home report values; but not everyone has benefited from what, generally speaking, was a positive year on the property market. The main problem for buyers and sellers is a lack of real choice on the market. Most people have to make sure they have obtained an acceptable offer for their property before they can make a serious offer for their next property, given that most sellers are reluctant to accept an offer from anyone who has still to receive an offer for their current property.
The lack of stock has been a problem at all levels of the market and has led to many properties being purchased by investors, rather than by people moving up the property ladder. This has particularly been the case for 2 bedroom flats close to Edinburgh city centre which have been attracting significant premiums throughout 2016.
One bedroom flats in good areas and in good condition have been selling well but many have been purchased, by investors too. Many would be first time buyers throughout Scotland are now resigned to renting, given the strict mortgage criteria and requirement for a large deposit, which most mortgage lenders still require. There are some lenders who have relaxed their lending criteria and are offering 95% mortgages and there are also schemes such as the shared equity LIFT and Help to Buy Schemes which can provide assistance to those looking to get on to the property ladder.
For those already on the property ladder and looking to move, the lack of stock is an advantage for selling but a disadvantage for purchasing. If you do decide to sell there is a chance, particularly in the early part of 2017, that more properties will come on to the market.
At the higher end of the market some people who are interested in selling having been asking estate agents to make off-market enquiries with prospective purchasers (some agents retain a list of prospective purchasers) to sound out what interest there might be in their property, without actually putting their house on the market. That has proved successful for some T C Young clients, notwithstanding the fact that exposure on the open market is almost always the best way to achieve the highest sale price for most properties.
Many properties are still not achieving 2007/mid 2008 prices, or are only just, attracting prices which people paid at the peak of the market, just before 'the crash' and again that is making some people reluctant to sell.
Not all properties in and around Edinburgh are selling for huge amounts over the asking price or home report value and it is very much the case that all properties need to be approached individually, so purchasers should not be downhearted.
We can provide information and advice to anyone thinking of buying and selling in Scotland and have experienced solicitors who have wide ranging experience of all purchasing all types of property. If you have any questions about the Edinburgh property market, feel free to get in touch.
