Purchasing your first property in Edinburgh is a big step. In a city with an active and ever popular residential market, and where the average price increased by 5 per cent annually (Sept 2017), saving for a deposit and looking for the right property within a limited budget can seem like a never-ending challenge. But the city does have a number of hotspots for those starting out on the housing ladder, including buyers whose priority is enjoying a city social life, as well as those who may have an eye on starting a family and are looking for more space. 

Taking the number of transactions within that key £100,000 to £200,000 bracket as an indicator of the availability of first-time purchases, we can pinpoint the places young Edinburgh professionals are now choosing to live. 

Old favourites for new buyers

The eastern stretches of Edinburgh, from Leith Walk to Easter Road, have long been popular with first-time buyers. Within walking distance of the city centre offices and with quick access to numerous bars, restaurants and trendy shops, this part of the city has a lot to offer. Alongside which, there is an abundance of tenement flats perfectly proportioned for those starting out in what has become one of the city’s favourite hipster hotspots. As a result, transaction values have been rising strongly. In the enclave around Broughton Street, which has increasingly developed its own core and identity, the average transaction value has increased by 18 per cent year on year and by 30 per cent over five years. Unsurprisingly this is leading to fewer transactions between £100,000 and £200,000 per year as properties move into the next price bracket. 

Meanwhile in Leith itself values have risen more steadily at 5 per cent annually and 12 per cent over five years. There remains an active market between £100,000 and £200,000, reflecting the less connected nature of this part of the city. Yet the gentrified shore area and Ocean Terminal waterfront shopping centre and cinema greatly enhance the pull of the area. The long-awaited extension of the tram route to Leith would certainly further boost the local market (a decision on this is anticipated later this year). 

Edinburgh’s emerging enclaves

In more positive news for first-time buyers, there are a number of areas in Edinburgh where the average transaction value remains below £200,000 and there is an active market between £100,000 and £200,000. Two such areas are Dalry/Slateford and Craigmillar.The former has benefited from the development around Haymarket and Fountainbridge, with the west end of Edinburgh pushing its boundaries and expanding further west. In Dalry, the average transaction value has increased by 8 per cent annually and by 30 per cent over five years, reaching £159,243 in the year to November 2017. The continued investment in the Fountain bridge cinema and restaurant complex, Haymarket station and the Edinburgh tram has shone a positive light on this part of town, and the development of student housing blocks have added to the vibrancy: nearby bars and restaurants are becoming both more plentiful and fashionable.

Looking further west, the investment in the tram has created an active market along its route, including in South Gyle and Carrick Knowe which offers tenement, ex-local authority and new-build properties. The average transaction value has increased by 6 per cent annually to above the £200,000, yet there is still a very active market between £100,000 and £200,000. While the relative scarcity of vibrant local amenities may be less attractive to young professionals, value for money is proving to be a pull factor, particularly for those seeking more space, perhaps with an eye to starting a family.

Craigmillar, three miles south east of the city centre, is piquing the interest of a similar group who are prepared to commute using a good local bus service. Once solely characterised by intensive council housing, its image is gradually changing due to considerable regeneration. The creation of green spaces, better amenities and high-quality new housing at attainable prices has greatly improved the desirability of the area among this group. As a result, the average transaction value has increased by 12 per cent annually and at £160,426 is now 28 per cent higher than five years ago.

Further information

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