Edinburgh’s continuing housing shortage is putting the City’s (and Scotland’s) repute as a nation of homeowners ‘under threat’, as the number of houses being built continues to be woefully inadequate in meeting the ever demanding needs of the growing population in the town.
In fact, I was talking to some friends the other day at a get together and the subject of the Edinburgh property market came up in the conversation after the weather and politics. It was said that it used to be that if you went out to work and did the right thing, you would expect that relatively quickly you would be buying a house, you would go on holiday every year and you would save for a pension. But now things seem to have changed.
At least 30,000 new homes are needed each year in Scotland to tackle the chronic housing shortage this Country has.
As you can see from the graph above (courtesy of the Office of National Statistics), only 18,285 properties were built in 2015 in Scotland as a whole (split down 12,050 built by private builders, 3,060 built by Housing Associations and a paltry 1,160 council houses). Also, and perhaps more concerning, is the fact that the last time we build more than 30,000 homes a year was in 1977 (the year of the punk explosion and the Queen’s silver (yes, silver!) jubilee depending on your taste) and we have only built 21,000 homes per year on average over the last 10 years.
The current Scottish Government is helping – they are committed to see the building of 6,000 homes per year on average and are on track to deliver this. However, this still leaves another 24,000 homes per year to build.
The picture in Edinburgh is similar to the Scottish wide trend.
There are simply not enough properties in Edinburgh and the shortage of supply has meant Edinburgh property values have continued to rise, meaning they are 7.0% higher than 6 months ago despite the Brexit impact on the housing market.
I was taught at school that it is all about supply and demand, this economics game. The demand for Edinburgh property has been particular strong for properties in the good areas of the town and it is my considered opinion that it is likely to continue this year, driven by growing demand among buyers (both Edinburgh home buyers and Edinburgh landlords alike). You see, Edinburgh’s economy is quite varied which will help it weather the current economic uncertainties that we are going through.
…and of supply, well we have spoken about the lack of new building in the town holding things back, but there is another issue relating to supply. Of the existing properties already built, the concern is the number of properties on the market and for sale. The number of properties currently for sale in Edinburgh is only 2,045, whilst 12 months ago this figure was well over 2,250 … a 9% drop!
With demand for Edinburgh property rising, minimal new homes being built and less properties coming onto the market, that can only mean one thing, now is a good time to be a homeowner or landlord in Edinburgh.
If you would like a chat to find out more about investment property and property management in Edinburgh please pick up the phone (0131 603 4570) or email (email@example.com).
A few more interesting articles about the Edinburgh property market:
- What will the 0.25% interest rate cut do for the Edinburgh Property Market? http://bit.ly/2cHG1l2
- 274% increase in 20 years in Edinburgh – interesting, very interesting http://bit.ly/2cqRvLU
- Edinburgh Buy to Let sees returns of 9.3% in the last year http://bit.ly/2cf5W36
- To buy or sell in the Edinburgh property market? That is the question http://bit.ly/2cBuKHb
- Values of Edinburgh flats smash through the £285/sq ft barrier http://bit.ly/2coIaXx
- Post Brexit property disaster - more like a ‘soft landing’ so far Nationwide claims http://bit.ly/2bW4zY