April News Bulletin

April News Bulletin

Prime property prices in Edinburgh rising at fastest rate for a decade

Property Wire reports; Property prices in Edinburgh’s prime property market increased by 3.3% between January and March, taking annual growth to 7.7%, the latest analysis report shows. READ MORE.

Cullen Property opinion:

A price growth report produced by Knight Frank highlights that property prices in Edinburgh’s prime property market has increased to an annual growth of 7.7%. This is the fastest growth rate in over a decade. However, supply of prime Edinburgh properties does remain tight, with 40% fewer properties worth £500,000 or more put up for sale in 2018 compared with the same time period in 2017. While activity was concentrated on central areas in 2017, this has started a ripple effect to more suburban areas. As Edinburgh is quickly expanding, these suburban areas are likely to increase in demand due to them offering easy access to Edinburgh’s City Centre.

Landlords turn to Scotland in hunt for profit

The Times reports; The number of landlords based in England who are registered with one of Scotland’s largest tenancy organisations has risen sharply, compounding fears that buy-to-let investors are pushing first-time buyers out of the housing market. READ MORE

Cullen Property opinion:
Analysis over the past five years from SafeDeposits Scotland suggests that there has been a 430% increase in landlords based in England who are letting out property in Scotland, rising from 260 to 1,388 during that period. There may well have been such a rise in English landlords letting Scottish property but what do these figures actually represent? Landlords based in England using an agent to let their property in Scotland, and therefore their agent’s office address, are missed off these figures.
The number of England-based landlords letting property in Scotland is increasing though. Driven by offers of a better rental yield combined with the opportunity to have capital growth as well (21% rise in Edinburgh house prices predicted by 2021). This trend is likely to continue as tenant demand remains ever buoyant.

Edinburgh named as top place to make a living

Edinburgh Evening News reports; Edinburgh has been named as one of the best places in the UK for people to earn a living. READ MORE.

Cullen Property opinion:
Edinburgh has been named the fourth best location in the UK to make a living – behind Crawley, Derby and Southampton. The study reviewed four categories across 59 locations, acknowledging the average wage, mortgage, cost of living and unemployment levels. Edinburgh is globally recognised as a first-class tourist destination for the abundance of festivals and rich history. However, Edinburgh residents are able to reap the benefits of the city’s cultural and economic offerings. With so much to offer, we expect the demand to live here will continue to increase and Edinburgh residential property will continue to increase in capital value.

Price growth in regional UK Cities outpacing London, led by Edinburgh

Propertywire reports; Regional cities are leading house price growth in the UK with Scotland seeing both the highest and the lowest in the 12 months to March 2018. READ MORE

Cullen Property opinion:
The latest index from Hometrack which tracks twenty cities across the nation reveals that price growth in regional UK cities is outpacing London. However, Edinburgh leads this price growth – with prices in Scotland’s capital having increased by 8.1% over the past 12 months, due to the current demand vs. property supply. Interestingly in London, property supply is exceeding the current demand. With the rising cost of London living and the economic benefits on offer in other UK regional cities, it is not surprising to see price growth in these regional cities currently outperforming London, and none so more than Edinburgh.

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