Last week, a landlord came in to our office to discuss the rising property values in Edinburgh. He owns a varied portfolio of rental properties, primarily in Edinburgh, and is thinking of buying more properties so he was interested in comparing the increase in property values around the area.
Over the last 5 years the average property value in Edinburgh has risen by £40,000, from £220,808 to £260,438. This is an increase of £152.42 per week. When you dig a bit deeper, the values for flats has performed the best in percentage increase terms with the average increase of flats over the last 5 years being 18% or £39,603 or £129.65 per week whereas semi detached houses have performed the worst in percentage increase terms as they have only seen an increase of value of 15% or £15,703 or £171.90 per week over this period. The value of detached and terraced houses has increased by 16-17% so they are somewhere in between flats and semi detached houses.
When we looked at some of the surrounding towns, what we found was very interesting as their property prices have all increased less than Edinburgh other than Balerno. Balerno has had the highest average increase in property value at around £161.54 per week with Juniper Green being not that far behind on £147.42 per week, followed by Kirkliston on £130.43, Currie on £125.48, South Queensferry on £111,95, Dalkeith on £103.33, Penicuik on £91.18, Musselburgh on £84.10 and finally Livingston on £82.24 per week.
So overall average property values in the area have risen which suggests that the local property market is recovering although, as always, there are pockets that are doing better than others.
When considering this landlord’s buy to let portfolio, the rental values have also been increasing over the last 5 years.
So with rising property prices and rents, it could be a good time to invest in the property market in Edinburgh.
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