A DRAMATIC shortage of homes on the market is exacerbating the problems facing buyers in the Scottish capital.
With only around 1000 homes listed for sale across Edinburgh, increased competition is driving premiums up and selling times down.
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According to Warners Solicitors and Estate Agents, this resulted in around 84 per cent of homes sold during the first three months of the year achieving a price in excess of the Home Report valuation – a marked increase compared to 55 per cent during the same period two years ago.
David Marshall, operations director with Warners, above, said: “The main driver for the strong seller’s market is simply a lack of properties available for sale.
“The number of homes on the market just now is less than a half of what you would typically expect at this time of year, where you could historically count on closer to 2500 listings.
“This supply shortage has been a characteristic of the market for a number of years now, with fewer homes on the market encouraging fewer potential movers to act.
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"This is compounded as Edinburgh’s population increases and older buyers increasingly look to downsize.
"For those who are simply looking to sell this is all great news of course.
"They can reasonably expect that their property will sell quickly and achieve a good price.”
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Warners’ research comes as a report by the Resolution Foundation predicts that up to a third of UK millennials- those born between 1980 and 1996 - face living in private rented accommodation all their lives.
First-time buyers find themselves at the sharp end of the current situation, as securing a property increasingly require additional reserves of thousands of pounds.
This is because lenders won’t tend to lend over the valuation.
For a £130,000 one bedroom flat selling at the average premium of 6.7 per cent above valuation, that would require close to £9,000 up front in addition to the deposit and fees.
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