Edinburgh Set to be a Property Hotspot for 2020
The Brexit deadline is finally in sight after several years of uncertainty and this, coupled with the recent general election, may leave you wondering which locations are set to be the property hotspots for 2020. Whether you are expanding your investment portfolio or buying a home, Edinburgh could be a great place to buy property this year. What’s more, Glasgow is still one of the most affordable regions in the UK.
The UK market
The latest House Price Index from Halifax reports a 1.7% rise in sales in December compared to the previous month. This is the largest increase of 2019 and it is believed that this is due to a boost in confidence following the General Election. Economic uncertainty is expected to ease this year and property transaction volumes look set to increase. Property is expected to rise by around 2% across the country according to several market experts, and according to Zoopla lower mortgage rates and improved earnings growth are the two things that can improve this, given that affordability is at the core of the housing market. However, the wage to house price ratio has increased over the last year at a higher rate than house prices especially here in Scotland where we see the most affordable regions in the UK.
Scotland performing well
Analysts from Nationwide have indicated that although economic activity for 2019 was volatile throughout much of 2019, Scotland was the strongest performer with prices up by 2.8% in the fourth quarter of the year compared to the same period in 2018. London was the weakest performer with a decline on 1.8% in the fourth quarter.
Affordability
Glasgow was among the ten UK cities where property was most affordable according to a report by comparethemarket. Homes here sell for just over five times the amount of the typical salary – one of the lowest ratios in the UK. In Glasgow a house is 5.26 time the average salary. What’s more, in Scotland overall prices in 2019 were 6.81 times the typical salary.
Why Edinburgh?
Zoopla ranked the UK’s 374 local authorities using price, growth, affordability and time taken to sell metrics. Property in the regional cities have high affordability with property markets that are outperforming the rest of the UK. London doesn’t feature in the top 20 whereas Edinburgh was fifth overall. Last year property in Edinburgh sold for 7.5% higher than the initial asking price and took just over 20 days to sell compared to the average of 69 across the rest of the UK. Homes here consistently achieved more than their asking price. Price to earnings ratio is 6.53 but prices are 19% below their last peak. Last year prices rose by 4.2%.
Property for sale
Our Edinburgh branch recently reported that the continued shortage of supply of stock, particularly in the city centre but also throughout the Lothians, has meant that there are a large proportion of offers being made and accepted subject to sale. We currently have some exceptional properties for sale:
Carlton Street, Stockbridge, Edinburgh
Offers £499,000
This is a fantastic opportunity to purchase a rarely available and highly sought after garden flat with two bedrooms and a large boxroom, in the extremely popular Stockbridge area of Edinburgh. The flat will appeal to young couples, professionals and downsizers and is approached via gate with staircase down to the private paved front garden with seating area and two cellars.
Arden Street, Marchmont, Edinburgh
Offers Over £430,000
Beautifully presented and well proportioned two bedroom, top floor tenement flat located in the extremely popular Marchmont area of Edinburgh. The flat is approached via well kept communal stair via a secure entry phone system, where there is also access to the well maintained shared resident’s garden.
Carnbee Crescent, Liberton, Edinburgh
Offers Over £260,000
Well proportioned three bedroom detached family home that is quietly set within an established residential development in Liberton. The house is approached via a large mono block driveway with entrance porch leading through to the spacious lounge, which in turn flows through to the open plan dining kitchen. Alcove through to kitchen area with floor and wall mounted units and appliances include a four ring gas hob with extractor hood and light, electric fan oven, washing machine and fridge/freezer. There is also under stair storage cupboard and door to side, giving access to private enclosed rear garden.
