ESPC House Price Report May 2015

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Summary

  • The number of homes sold in East Central Scotland between March and May 2015 has risen by 9.4% compared with the same period last year.
  • The average selling price in East Central Scotland has increased by 9.3% between March and May 2015, compared with the same period last year.
  • The percentage of sales achieving the Home Report valuation rose from 51.3% between March and May of 2014 to 55.8% in 2015.
  • The number of new homes brought to market between the months of March and May has decreased by 3.9% compared with the same period last year.

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Full Report

Figures released by ESPC for the three month period between March and May 2015 have revealed that the market in East Central Scotland is shifting in favour of the seller, as fewer new homes are being brought to sale compared with the same period last year. While figures show a decrease of 3.9% in homes being put on the market, the first year-on-year decrease since 2013, there has also been an increase in sales.

In contrast to the number of properties being brought to market, the number of homes sold in East Central Scotland rose by 9.4% between March and May 2015, when compared by that same period last year.

It’s also taking less time to sell a property – the median selling time in East Central Scotland is down by 4.9% compared to the same three-month period a year ago.

When Land and Buildings Transaction Tax (LBTT) was first introduced to replace Stamp Duty, we saw its impact in the months leading up to its implementation date of 1st April 2015. There was a huge increase in properties over £300,000 coming to market after plans for LBTT were announced and similarly we saw this large increase in properties for sale over £300,000 leading up to its implementation. But the effect of the introduction of LBTT has now tapered off, even though we are still seeing year-on-year growth.

While there has been a rise in the average selling price by 9.3% compared with last year, this has levelled out following the steep rise of 18% in last month’s House Price Report.  The largest growth reported last year was 5.1%, so we are still above that high point.

Dunfermline has seen the largest year-on-year increase in the average selling price for all properties, increasing by 15.2%. There has also been the largest year-on-year increase in the average selling price for two bedroom flats in Stockbridge and Comely Bank, by 15.4%, demonstrating that this area is growing increasingly popular amongst buyers and renters.

ESPC’s business analyst Maria Botha-Lopez said: “As we are recording less homes being brought to market, there is greater competition for buyers. We are therefore seeing an increase in sales achieving their Home Report valuation and homes are also taking less time to sell. This shows that the market is currently primed for sellers, and buyers have to act quickly on the properties that they like.

“LBTT has not made the same impact on property prices as it did in the months leading up to its implementation, and it is unclear at this stage what effect it will have on properties under £145,000, the tax free value when buying a property. But we are expecting to see a continued year-on-year growth in the property market.”

View the house price table.

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Want to know about previous months and years? Read our historical house price data.