House sales: ‘strong start to year’ continues

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%.

HPR table Feb 2015

‘Common sense’ to prevail over mortgage lending

‘Only borrow what you can afford to pay back’. That seems obvious enough now, but during the property boom the sky was the limit and credit was easy – with disastrous consequences. Lessons have been learned, and new rules come into force tomorrow (26 April) to protect borrowers and ensure a ‘common sense approach’ is taken for every lending decision.

The rules – known as the Mortgage Market Review (MMR) – were drawn up by the Financial Conduct Authority (FCA) as a result of the recent financial crisis and are designed to protect consumers from the kind of reckless mortgage lending that would leave them unable to make repayments.

To ensure that people only get a mortgage they can afford, and to prevent a recurrence of the irresponsible lending practices of the recent past, every borrower will now have to prove that they can afford the repayments both now and in the future. The new scheme will include a new affordability check that will see applicants interviewed by a lender and asked about their income and outgoings.

The FCA has produced a short guide that explains the changes, and around half a million copies will be given out to prospective borrowers in branches of high street lenders, mortgage advisers and estate agents.

Martin Wheatley, the FCA’s chief executive, said: “In the past too many people got a mortgage by simply telling their lender they would have no problem repaying their debt, and that was that. Getting a mortgage can be one of the biggest financial decisions people will ever make, so it needs careful consideration. Our new rules will hard-wire common sense into mortgage lending, and the guide we have created will help explain those changes to borrowers.”

The mortgage industry has been busy getting ready for the changes for about 18 months and many firms are using the new approach already, so some borrowers will not notice the difference.

The FCA has also updated its consumer information pages on its website, at: www.fca.org.uk

Miller Homes releases Belford Campus at Varcity North

Fancy buying an apartment in your old classroom? Miller Homes has released a new apartment campus at their Varcity North development in Edinburgh. Belford Campus is the second of five apartment blocks being built on the site of the former Telford College, with its name reflecting that heritage.

Belford Campus is a four storey, L-shaped building, which will offer a range of one and two bedroomed apartments with allocated parking. Prices start from £123,000 for one bedroom and £167,000 for the two bedroomed apartments. Reservations are being taken now.

The flexible accommodation offers an exciting prospect for investors buying to let, downsizers, newly singles and couples looking to move closer into the city centre. With open plan living/dining combined with contemporary kitchen areas, the layout lends itself to living and entertaining in stylish, high quality apartments. Lift access to all upper floors, allocated parking and secure entry systems ensures that Varcity North is at the forefront of apartment living.

Situated between the city centre and the waterfront and with excellent transport links to all areas of Edinburgh and beyond, Varcity North combines stylish city living with spacious, practical and affordable homes.

Anne Marie Britton, Sales Director for Miller Homes Scotland East, said: “We’re delighted to bring the Belford Campus to market to complement the existing properties at Varcity North. Space, quality and price are the differentiators and this development is becoming the place to live for househunters seeking all three.

“Starting at just £123,000, our competitive prices make owning a contemporary city apartment a reality, enjoying easy access to all that Edinburgh has to offer. From parks to art galleries, the beach to stunning views across the Firth of Forth and restaurants, bars and bistros second to none, you won’t be short of ideas on what to do from your new capital apartment.”

For more information, go to www.millerhomes.co.uk or call 0800 840 8416. The sales centre is open Thursday to Monday from 11am to 6pm. Househunters can also logon via the Miller Homes’ website to book an appointment with an adviser at the development.