Development Finance News:- The Scottish capital’s annual house price growth slowed to 4.3 per cent in June, down from 7.6 per cent at the end of the first quarter of 2019, according to Knight Frank analysis.
The estate agents said until now Edinburgh had been relatively unaffected by political uncertainty unlike other regional prime markets.
Knight Frank residential research associate, Oliver Knight, said: “Whilst a slowing of price growth in the prime Edinburgh market is a sign that both buyers and sellers in the city have become more cautious, it remains one of the strongest prime markets tracked by Knight Frank in the UK.
“Properties that are priced to reflect current market conditions continue to attract buyers, something which is evidenced by Knight Frank figures showing the number of offers accepted between January and June 2019 was up 7.7 per cent year-on-year.”
New listings across the whole market in Edinburgh was 15 per cent lower in the second quarter of 2019 compared to the same period in 2018. There was also a 12 per cent decline in new listings above £500,000 in the second quarter compared with 2018.
Transaction times across the whole of the Edinburgh market have lengthened by 56 days so far this year – a 5.6 per cent increase compared with 2018.
However, agents reported properties priced to reflect current market conditions continued to attract buyers. The number of offers accepted between January and June 2019 was 7.7 per cent higher year-on-year, while exchanges were also up – buoyed by a strong start to the year in the new homes market.
Development Finance by HZA
Family houses in the suburbs popular
Demand for family houses close to the city centre was robust, especially in areas such as Murrayfield, Morningside and Newington. This was reflected in pricing, with Knight Frank’s index showing average values for houses rose 5.5 per cent in the year to June, compared with 2.4 per cent growth for flats.
Country house prices in Scotland fell by 0.1 per cent in the second quarter – the first quarterly fall for two years. Annual growth remained positive, at 1.1 per cent. Modest annual increases in values were seen across the central belt, in the north and in the Borders. Rural locations within commuting distance of employment hubs were the stronger performers. The relative value on offer in prime Scottish markets compared to the rest of the UK should drive demand in 2019, said Knight Frank. Average prices in Scotland remain around 20 per cent off the pre-financial crisis peak in 2007.