Marijana No Comments

Why Buy to Let Edinburgh is rapidly rising?

Being a resident of Edinburgh, I can assure you that this city is a great choice to buy to let. This is because this thriving city has everything to attract students, tourists, and professionals alike. Following are some reasons why so many people from all over the world are looking to buy to let in Edinburgh:

Booming businesses – With over hundreds of businesses blooming in the city, Edinburgh is Europe’s 4th largest financial center. That’s why many young professionals from various parts of the world flock to this city to flourish their careers, and most actively looking for buying to let.

Student-friendly – Due to a large number of educational universities and institutes in the city, many students are attracted to Edinburgh. With the increasing number of the student population, the demand for suitable accommodation is also on the rise.

Tourism – Edinburgh is a tourist hotspot, and buying property to rent out to holiday makers is a big business here.

Source: Property118

Marijana No Comments

Edinburgh homes now selling at a premium

High premiums are increasingly being required for buyers to secure homes in and around Edinburgh, Warners Solicitors and Estate Agents found.

Almost four out of five (78.6%) homes are now achieving a selling price in excess of their home report valuation – an increase of more than 20% compared to the same period last year.

The average premium being paid has also risen from 2.9% over valuation a year ago to 5.5% today.

David Marshall, operations director at Warners Solicitors and Estate Agents, said: “A great deal of the house price growth that we have seen over the last 18 months has been driven by an excess of demand over supply.

“The improvement in supply that we are now seeing will help to alleviate the pressure on buyers and bring greater balance to the market.”

Although good news for those selling their properties in and around the capital, these statistics show that the market is not looking so favourably towards first-time buyers especially.

The increase in premium prices means that first-time buyers need to have an average of £8,250, as well as their deposit, to secure a £150,000 home, as lenders will only provide lending up to the home report valuation.

However, since November the number of properties being brought to the market has risen, with Warners experiencing a 33% surge in new listings year-on-year.

This growth, spurred on by the demand for properties in Edinburgh and the Lothians, should see house prices moderate as the market balances.

Marshall added: “Moving forward in 2018 we expect that the market will still be buoyant, but with the higher premiums that we saw during 2017 becoming less prevalent as the year progresses.

“This should help to keep house price growth in the local market broadly in line with CPI inflation at between 2 and 3%.”

Source: Mortgage Introducer

Marijana No Comments

Edinburgh housing market cools

Edinburgh’s housing market is showing signs of settling down after a whirlwind 18 months, says Warners Solicitors and Estate Agents.

There is likely to be more sellers in 2018, encouraged by a favourable 2017 which saw consistently rising house prices and more properties listed.

David Marshall, operations director at Warners Solicitors and Estate Agents, said: “This is long awaited good news for buyers who have been at the sharp end of Edinburgh’s price rises and its undersupply of homes.

“The cooling in the market can partly be attributed to seasonal factors, but, more importantly, there has been a rise in the number of properties coming onto the market.”

During the last three months of 2017, Warners recorded a 13% annual rise in the number of properties being brought to the market for sale.

The average selling price was 5.4% over their home report valuation during the final quarter of the year, down from 6.0% in the preceding three months.

Marshall added: “The increase in new listings is significant because the main factor driving the seller’s market over the last two years has been that lack of supply. Demand from buyers has consistently outstripped the supply of homes for sale.

“As a result the homes that were available for sale generally attracted a large number of buyers, resulting in the low selling times and high premiums that characterised the market.

“With more homes now coming onto the market, there is greater competition between sellers leading to the cooling in selling times and premiums that we have seen recently.”

It is predicted that the annual house price inflation in 2018 is to stand at around 2.5% in the local market, having been as high as 10% during 2017.

Source: Mortgage Introducer