The market is booming up here – as hot as it has been known. We all knew that the lockdown would have a knock-on effect, but Edinburgh has exploded out the blocks.
The question is, is this a long-lasting trend, or just the pent-up demand created by a total shut down for 3 months? It has helped that the English market opened up first, creating willing buyers down south who were prepped and ready. Here is a look at Edinburgh’s property market as it stands currently
Moving from London to Edinburgh Priorities
Families are looking to move out of London to Edinburgh. It has always been an attractive idea, but having experienced lockdown, many are converting the possibility into reality. In a report by Garrington, priorities since lockdown are a garden (37%), a place to work from home (31%), a larger property (20%), and less urban (19%).
I chuckled at the last stat – closer to friends and family (5%)!! These were London respondents – the rural market in England is benefiting the new post lockdown priorities. So, what about Edinburgh?
Edinburgh Property Demand
6 Bedroom house on Southside – image courtesy of Rettie.
In a way, Edinburgh is the reverse. Although interest in the rural market has increased, it is the city itself that is flying. Since 29th June 2020 when restrictions were eased, the ESPC has seen a 39% year on year increase in the number of homes coming to the market.
Property valuation requests are up 120% compared to last year and their website traffic has increased by 75%. Properties are going for over their valuation reports – now is the time to sell.
High property activity has been helped by the governments’ raising of the nil threshold for Land and buildings Transaction Tax (LBTT) from £145k to £250k, till 31/3/2021.
Combined with The Bank of England base rate remaining at a historic low of 0.1%, the re-opening of the market in Edinburgh has created an extraordinary whirlwind of activity. The stats when they come out will be fascinating reading.
Offers Over System in Scotland
4 Bedroom flat city centre – image courtesy of Savills.
Whilst the situation has been fortunate for some clients, selling very quickly, it has brought disaster for others. The offers over system in Scotland has in the past created a much more secure and stable buying process.
Although the initial process of having to place a blind bid for a property is a tricky area to navigate, once missives are signed, the transaction is legally binding. In other words, once you have legally agreed to buy or sell, you can’t pull out of the deal without huge financial consequences.
Gazumping and huge property chains haven’t been a feature. Not that they are now, the same legal system is still in place, but the extraordinary circumstances have meant sales have fallen through. For buyers that were mid-process but pre missives, there was no guarantee that when the market opened the seller would be in the same situation.
Many sellers have looked at how the market has changed and decided to pull out of the original deal and put their property back on the market. Totally legal, but heartbreaking for the other side.
We are still in the early stages of post-restrictions, and these are not normal market conditions. Usually at this time Edinburgh is revving up to open for the Edinburgh Festival and Fringe. The locals would have their tickets booked for shows or booked to be heading abroad to miss the madness of August! Consequently, the property market is traditionally on pause till September, but now it couldn’t be more different. The interesting point will be if and when the flood abates and the financial consequences of Covid-19 hit. Oh and then we can throw in Brexit and Indyref2!!!
If you are looking to sell, I can help with arranging removal firms, decluttering, and organising for items to go to auction or charity. Contact me to find out more.