Ashleigh Urwin, Partner, Aberdein Considine, said: “The upcoming 8% increase in Council Tax in Edinburgh could have a marked impact on the housing market – not only does it add to the financial pressure faced by homeowners, but it will also make properties less affordable, especially for first time buyers.
“The knock-on impacts could include a slowdown in demand for properties, or a reduction in housing price growth.
“Larger family homes in the higher Council Tax bands, particularly in areas like Morningside, Bruntsfield and The Grange, are likely to see the biggest cost increases. And landlords in high demand rental areas, such as Leith and the city centre, could pass on extra costs to tenants, driving up rents.
“Both buyers and sellers will need time to adjust to these changes, so the impact on house prices and rental costs will likely not become known until a few months down the line.
“Buyers should carefully consider these rising costs when planning their budgets, and explore their financial options, negotiating on price where possible.
“It would also be wise for buyers to compare areas, as some neighbourhoods may be more impacted by the tax increase than others.”