New research reveals that Edinburgh's first-time buyers are willing to sacrifice space to stay in their preferred neighborhoods despite rising property prices
The conventional wisdom suggests that rising property prices would drive Edinburgh’s first-time buyers to seek homes in commuter towns. However, recent research by ESPC challenges this assumption, revealing that location remains the top priority for young buyers in the Scottish capital.
Paul Hilton CEO of ESPC shared his insights after examining the latest trends in Edinburgh’s property market. His findings paint a nuanced picture of the city’s housing landscape, where affordability concerns are being balanced against the desire to live in preferred neighborhoods.
Edinburgh’s Neighborhoods Remain Popular Despite Price Increases
The research focused on sales of one and two-bedroom flats in traditional first-time buyer hotspots such as LeithStockbridgeAbbeyhillBruntsfieldNewington and Portobello. These areas were compared to popular commuter towns to determine if there had been a shift in buying patterns.
The results were surprising. In Abbeyhill sales of starter homes rose by nine per cent year-over-year, while in Inverleith the increase was 19 per cent. The figures were even more striking in Leith with sales around Leith Walk up by 61 per cent and around Leith Links by 64 per cent.
Some Areas Experience Declines
Not all areas saw an increase in sales. Around Easter Road sales were down by 18 per cent annually, and in Stockbridge the figure was 27 per cent. These declines suggest that even within the city, certain neighborhoods are experiencing shifts in demand.
Commuter Towns See Mixed Results
When comparing these figures to commuter towns, the picture becomes more complex. Sales of one and two-bedroom flats in Musselburgh declined by 21 per cent over the same period. However, Bonnyrigg saw a healthy increase of 10 per cent for the same type of property.
This mixed performance in commuter towns indicates that affordability pressure is not solely driving buyers to relocate. Instead, buyers are weighing the pros and cons of living further from the city center against the benefits of staying in their preferred neighborhoods.
The Role of ‘Rising Star’ Neighborhoods
Hilton highlighted the importance of ‘rising star’ neighborhoods such as Gorgie and Dalry where sales volumes were up by four per cent over the same period. These areas are becoming increasingly attractive to first-time buyers who are willing to explore new parts of the city to find their ideal home.
The Future of Edinburgh’s Property Market
Summing up the findings, Hilton noted that the data does not support the notion that first-time buyers are exiting Edinburgh in large numbers. Instead, it suggests that young buyers are prioritizing location over affordability, even if it means sacrificing space or saving for longer.
“It seems as though, for the time being at least, it remains all about ‘location, location, location’ for buyers starting out, with Edinburgh remaining the goal for many about to take the property plunge,” Hilton concluded.
As the property market continues to evolve, it will be interesting to see how these trends develop. For now, it appears that Edinburgh’s allure as a place to live remains strong, even in the face of rising prices.
