We’ve recently had a landlord get in touch to discuss the rise in property values in New Town. He owns a varied portfolio of properties within Edinburgh but is particularly interested in the New Town area. We’ve also highlighted some examples of how well some Stockbridge properties have fared over a longer time frame.
Over the last 12 months, the average property value in New Town has risen by £38,433 from £427,031 to £465,464. That’s a more than reasonable 9.23% increase.
Looking more specifically at semi-detached houses the increase is even greater at £85,287, from £786,149 to £871,436 or the equivalent of a 10.85% increase. This is a considerable average increase of £1,640 per week!!
Flats have seen a more modest increase of 7.84%, equivalent to £29,178 from £375,037 to £401,290. That weekly increase is £561.11.
When considering this landlord’s buy to let portfolio, the long-term rental values have remained fairly stable during the 12 months. This coupled with the fact that his properties are growing in value exponentially over that period, means he is in a strong position going forward.
When we compare Edinburgh as a whole with New town, the data is extremely consistent. The average property value in Edinburgh has increased from £295,088 to £321,646 (9.20%) over the last year.
So why was 2020 such a fruitful year in property value increase? Well, predominantly commentators have attributed it to the increased LBTT Threshold (ending March 31st) and the general surge in market activity since the end of the first Lockdown. Sale prices skyrocketed and therefore surveyor valuations have needed to cater to the market conditions.
Stockbridge Property Price Growth over the last 10 years:
To provide some evidence of the strength of the Stockbridge market and how sellers have achieved large amounts of capital growth in the last ten years, I have picked out some case studies. These are specifically designed to show the potential the area has for capital growth. Importantly, this shows the growth in sale price rather than the property value.
- 33a Raeburn Place, Edinburgh, Mid EH4 1HX: Based in the heart of Stockbridge, The Registers of Scotland have recorded this 3-bedroom semi-detached house as having been purchased in 2006 for £340,000.00. In January of 2020 it sold for a whopping £992,500.00.
- 23, Dean Park Mews, Edinburgh, Midlothian EH4 1EE: This 3 bedroom terraced house based in Dean Village was purchased in 2002 for £275,700. It sold in November 2020 for £695,000.
- 11, 2f4, Dean Park Street, Edinburgh, Mid EH4 1JR: This 1 bedroom flat was purchased in 2012 for £130,000.00. It then sold in January 2020 for £254,000.00.
- 4b St. Vincent Street, Edinburgh, Midlothian EH3 6SH: This 2 bedroom flat was purchased in October 2015 for £340,000. It then sold in November 2020 for £442,500, an increase in sale price of over 23% in just five years.
- 58, Cumberland Street, Edinburgh, Mid EH3 6RF: This 3 bed apartment was purchased in April 2017 for 630,000. It was sold in October 2020 for £780,000 with an increase in sale price of over 19% in as little as three years.
This level of capital growth isn’t entirely unique to Stockbridge. Other areas of New Town do similarly well but there’s no denying that Stockbridge has been a standout area within Edinburgh for capital growth over the last decade and a half.