First time buyers are at long last getting a look in with the ease of lending criteria but with demand continuing to outstrip supply closing date competition for attractive City properties is back on the regular agenda. It was never going to be that easy was it?
Families back from the summer break, as well as buy to let investors continue to be encouraged by the current historically low mortgage rates. Banks and building societies are vying for borrowers’ business as never before.
All of which is good news for sellers too - with the realistic prospect of sale prices reaching or indeed, for a nicely presented Edinburgh home, very possibly exceeding Home Report valuation.
Sellers, some with an eye now on the prospect of completing a move before this year’s festive season do have their own issues to consider. The Edinburgh market continues to be short of good quality properties. A significant contributing factor is the hesitation of owners to market for sale when there is a relatively smaller choice available for their next home, raising the dilemma of what to do if your home has sold (albeit for a good price) without having found where you are moving to.
Our recent experience is that most clients who have taken the plunge and sold first do tend to attract good quality offers; and having achieved a good sale, they are in an excellent position to negotiate a purchase, not subject to sale condition, or alternatively have taken the option of a short term rental giving time to secure just the right next home.
The Brexit vote can certainly not be ignored in the mix of market influences, but the effect, at least in the short to medium term, as with the broader economy, has not shown such a significant spike in market statistics (such as a surge or drop in demand for residential property in the City) as some analysts might have predicted.
LBTT – the stamp duty on property transfers – has been and will undoubtedly remain an important factor in purchasers’ and sellers’ minds. The tax bands, including the 3% surcharge on second homes, certainly have had an effect on property sales, particularly around the £325,000 percentage band break. The mid-market in particular has accommodated the tax well, and clients have reported satisfaction in sale price to soften the added cost of the tax on their next purchase further up the ladder. Meantime first time buyers have benefitted from the nil charge on purchases of up to £145,000.
There are plenty ways of getting the best out of the market this autumn and we at Blair Cadell are happy to discuss your needs whatever the season.
BC blog editor