Edinburgh property for sale? Contact us for no nonsense advice!

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House prices in Edinburgh will continue to rise steadily in the coming months, with property hotspots such as Shandon and central areas outperforming the rest of the city. We will see steady growth in the market as it continues to recover from the crash of 2007.

House prices are expected to rise by around three per cent on average, adding £5,065 onto the typical property price of £168,843.

Mortgage and Interest Rates

However, growth will depend on mortgage rates staying low, meaning that a long-overdue change in interest rates could throw things off course. The supply of houses coming onto the market also continues to have an effect.

LBBT

Changes in tax laws which will increase the amount of Land and Buildings Transaction Tax (LBTT) on second homes are also expected to disrupt the buy-to-let market.

How the Market has Recovered

The bulk of the residential market across Scotland recovered during the second half of 2015, as it adjusted to tighter controls on mortgage lending introduced in 2014.

We expect this trend to continue in 2016 as the market benefits from relatively low rates of taxation combined with attractive mortgage rates.

City Hotspots Always Popular

We expect values in city locations and core hotspots to outperform the figure for Scotland as a whole, due to a continuing lack of supply.

The Edinburgh market will continue to remain very active and, unless supply can meet demand, prices will continue to rise throughout the year.

Optimism

The threat of an increase in the base lending rate may have an adverse effect on the mortgage market which could impact on the property market if mortgages become unaffordable. However, we go into 2016 with renewed optimism and predict that supply and demand will remain on an upward trajectory.

If you are looking to sell your property in 2016 please give us a call for a free valuation.

Jacquie Macdonald

 

Jacquie MacDonald

Head of Corporate Development