A View on the Property Market

Bob Arbuthnott, one of our Directors and a very experienced conveyancing solicitor, gives his view on the autumn / winter property market in Edinburgh.

Recent trends in the autumn / winter property market

One of the joys of working in the property market for over 30 years is that, even after all this time, you still don’t know what the market is going to do next.

In the old days, for instance, it used to be normal for there to be an upsurge in activity in the Edinburgh market as we moved into autumn. Homeowners would take the plunge into the unknown by buying a new property in the hope of moving before Christmas and selling their own property in the seasonally “busy” time before then. First-time buyers recovering from the spending spree of their summer holidays would plan a move before the end of the year.

This has not been such an obvious phenomenon for the last few years. The fickleness of lenders, the uncertainties of the economy and the virtual disappearance of bridging loans has put paid to the “buy first” strategy for most existing homeowners and first-time buyers alike.

Will this year be different?

Recent evidence is promising in that many “family homes” that have come on to the market have attracted so much interest that they are going to closing dates, or being tempted off the market, within a few days.

What is happening?

Some suggestions are that it is the aftermath of the Referendum which caused a noticeable pause in the market earlier in the year.

Perhaps Mr Swinney’s announcement of his new Land & Buildings Transaction Tax (LBTT) rates which will apply from 1 April 2015 has spurred people into action? (See my colleague Laura McFadzean’s recent article on the new LBTT rates.)

On the other hand, maybe his actions have been interpreted as an early start to the pantomime season with some feeling that instead of being a “Robin Hood” he has stumbled into “Mother Goose” and from April onwards will be scrambling the Golden Egg? Has he unfairly targeted the mid-market family home in Edinburgh to such an extent that the market will be distorted for years to come? There is no doubt that most people would prefer to buy now and pay almost half the amount of tax that will be payable once the new regime is in place in April next year.

Property is a “people” business

Whatever the reason, we are monitoring the situation carefully and noticing, perhaps even more so than ever before, that what determines the outcome in any property transaction is the people involved more so than the market trends and any amount of data and statistics.

Every property, buyer and seller is different and sometimes it is not just the price, or even the valuation, that is the most important factor in any negotiation. Property has always been a “people” business, and now even more so than ever before.

At ELP Arbuthnott McClanachan we offer a personal service providing advice tailored to your own specific circumstances. If you would appreciate some “old-fashioned” advice or assistance on what to do next in the property market, please call Bob Arbuthnott on 0131 554 8649 or e-mail him at rja@elpamsolicitors.co.uk.