ESPC House Price Report: December 2014

Summary

• The number of homes sold across Edinburgh, the Lothians and Fife rose by just over 4% annually during the final three months of 2014.
• The number of homes coming onto the market also rose with new instructions up by 21% on an annual basis.
• There was a sharp rise in the number of higher priced properties coming onto the market ahead of the introduction of LBTT in Scotland on 1 April 2015.
• House prices have continued to inch upwards in most areas of East Central Scotland.
• 33% of homes sold during the fourth quarter achieved a selling price in excess of the Home Report valuation. This marks the highest level for the quarter since Home Reports were introduced.

Full report

Latest figures released by ESPC show that activity in the property market remained brisk during the final quarter of 2014. During the last three months of the year the number of sales recorded across Edinburgh, the Lothians and Fife was over 4% higher than during the same period in 2013 whilst the number of homes coming onto the market was up by 21% on an annual basis.

There was a particularly sharp increase in the number of higher value properties coming onto the market ahead of the introduction of Land & Buildings Transaction Tax (LBTT) in April. The number of new listings with an asking price of £300,000 or more rose by almost 80% on an annual basis as sellers sought to take advanatge of the anticipated rise in demand for upmarket homes during the first quarter of 2015.

David Marshall, Business Development Manager with ESPC explained: “As it stands, anyone looking to buy a property for over £254,000 will face a higher tax bill once LBTT is introduced. For example, if you’re buying a home for £400,000 today you would pay Stamp Duty of £10,000. As proposals currently stand this figure would rise to £17,300 following the introduction of LBTT in April.

“As a result, those thinking of buying at this end of the market will have a strong financial incentive to bring their purchase forward if they’re able to. Similarly, sellers will be keen to take advanatge of this likely rise in demand by getting their home on the market sooner than they otherwise would have and this is reflected in the upturn in listings we’ve seen recently.more

“The market largely outperformed expectations in 2014 with buyer and seller activity at its highest level since the economic downturn in 2008. During the last three months of 2014, 33% of homes sold in Edinburgh, the Lothians and Fife achieved a selling price in excess of their Home Report valuation. That’s the highest level we’ve seen for the fourth quarter of any year since Home Reports were introduced and it reflects the improved market conditions that sellers have faced over the last 12 months.

“During the first half of 2015 there’s likley to be some disruption to transaction levels around the introduction of LBTT. The first three months of the year should be particularly busy in the market for higher value properties with a corresponding drop in demand during the following three months. Overall however the picture of steady improvement witnessed over the last year and a half should continue in 2015, with the number of homes changing hands rising and house price inching up by around 4%.”

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