HOUSE prices in South Queensferry are rising at one of fastest rates in Scotland as the new road crossing nears completion.
The average selling prices of a three-bedroom home in South Queensferry and Dalmeny rose by 15.5 per cent during the last three months, compared to the same period in 2015. The value of two and four bedroom houses in these areas have also increased.
Edinburgh Solicitors Property Centre (ESPC), who compiled the figures, said the growth in demand reflected increasing popularity among commuters ahead of the new Queensferry Crossing opening in May 2017.
The £1.35 billion road bridge was originally scheduled to open in December 2016 but the delay in construction has been blamed on “adverse weather conditions” during the first half of this year. Maria Botha-Lopez, business analyst for ESPC, said sellers were also benefitting from a shortage of properties for sale.
She said: “Average selling prices in Edinburgh and east central Scotland are continuing to rise, and we have seen houses in South Queensferry show one of the largest increases. “This could be an early effect of the Queensferry Crossing, offering greater transport links and an easier commute.
“While we are seeing this increase in prices, there continues to be an annual drop in property sales and new listings. This reflects the ongoing shortage of properties on the market, rather than a decrease in buyer demand, and indicates we are still in this seller’s market.”
Elsewhere in the Edinburgh region, selling prices for three bedrooms houses in the Currie and Juniper Green areas rose by 21.4 per cent between July and September this year. The area attracts buyers seeking a quiet, village feel and community spirit.
Average prices for two bedroom flats in the New Town and West End of Edinburgh also increased by 13.6 per cent over the last three months, while one bedroom flats in the Leith Walk area continue to be a bestseller.
ESPC said one-bedroom flats in Leith Walk have sold in greatest volume and have seen a 10.5 per cent increase year-on-year in average house prices. The firm found that average selling prices across east central Scotland and Edinburgh are continuing to rise despite the outcome of the EU referendum in June, but Ms Botha-Lopez stressed that it was too early to say what the impact of Brexit would be on property prices.
She added: “It is also too early to tell what the impact will be of Theresa May’s announcement of a date to trigger article 50 by March.
“Various organisations, such as Homes for Scotland, The Scottish Property Federation and the Royal Institute of Chartered Surveyors, cite additional pressures on the housing market caused by the higher Land and Buildings Transaction Tax (LBTT) rates on properties over £325,000, as well as the 3 per cent second homes tax. Home movers, sellers and buyers are facing these new tax pressures and might be delaying or even reconsidering their options when it comes to moving home.”
LBTT replaced stamp duty in Scotland in 2015 under newly devolved powers. It means anyone buying a property worth up to £145,000 no longer pay tax, but properties changing hands for between £325,001 and £750,000 carry a 10 per cent tax charge. All transactions above £750,000 are in the 12 per cent LBTT band rate.
Ms Botha-Lopez added: “We carried out a recent survey with our solicitor estate agents to find out their views and the most cited barrier to selling is the availability of homes to move to, while the most cited barrier for buyers is the extra costs of LBTT and the competition when it comes to putting in an offer.”
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