House prices up 15% year on year
The latest figures from ESPC’s monthly House Price Report show that the strong start to the year has continued with the number of homes sold during February up 16% year on year. According to leading property marketing company, ESPC, the average selling price of property across the regions has also risen 15% compared to the same time last year.
Trends have revealed an increasing number of upper mid-market properties coming to the market ahead of the introduction of Land and Buildings Transaction Tax (LBTT) on 1st April this year. The number of new properties marketed in February with an asking price of over £300,000 was 53% more than February 2014.
Commenting on the report’s findings, Paul Hilton, ESPC CEO, said: “We have continued to see an increased volume of new listings with an asking price of over £300,000 marketed this month, with sellers hoping to attract buyers looking to take advantage of a lower tax bill.
“We expect to see this percentage increase start to slow next month with the change becoming more imminent and therefore allowing less time for a sale to conclude before the changes are implemented. Buyers must have settled their purchase before 31st March to pay tax under the current Stamp Duty regime. Any sales concluded after this date will pay tax under the new LBTT regime. Properties sold for over £333,000 will pay less tax before 1st April 2015.
“The median selling time in East Central Scotland is down by 12% during the three months up to and including February a year ago. Increased competition from buyers not only means quicker selling times but also more sellers achieving their Home Report valuations. The percentage of sales achieving their Home Report valuation in the same period rose from 60% a year ago to 69% today.
“Prices have increased year on year but have remained fairly consistent in the three months up to and including January. The average house price in Edinburgh for the three months to February was £216,021, up 15% annually.
“The outlying areas again have seen an increase in average selling price year-on-year. West Lothian has again seen a particularly sharp increase of 26%, up to £182,756 compared to £134,677 in the same period last year.”
The report’s key finings are:
- The number of homes brought to the market saw an increase during the month of February.
- The average selling price in East Central Scotland increased by 15% in the three months up to and including February year-on-year.
- Seller activity saw a particularly sharp increase in the upper-mid market with new homes being marketed ahead of the imminent change to property tax.
- The percentage of sales achieving the Home Report valuation remains strong at 69%.
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