Holiday let investors add fire to Edinburgh's red hot property market

It's already tough enough getting a foot on Edinburgh's property ladder but investors snapping up homes for holiday lets are making it even harder.

The latest figures from the ESPC show selling prices in the West End and New Town have soared by nearly 27% in just three months to an average of £398,804.

The research also suggests the number of properties being sold in these areas jumped by 18.5% over the same period and they generally achieve 13.5% above the asking price.

Experts say there is fierce competition from people hoping to rent out flats on websites like Airbnb.

Other areas of Edinburgh that are proving to be in high demand include Polwarth, Shandon and Tollcross, where average selling prices have increased by 16.8%.

ESPC's business analyst Maria Both Lopez said: "Properties in the New Town and West End are some of the most sought-after in Edinburgh, and over the last three months they have been snapped up quickly, going for considerably over the asking price.

"As Edinburgh’s city centre is becoming a hot spot for visitors to stay, there could be a correlation between the popularity for New Town properties available as holiday lets.

"As we come into the Christmas season we tend to see a slow-down in the market, which is reflective of the slight decrease in the number of homes being sold and the longer time to sell compared with the last couple of months.

"However, properties are still selling faster than the same time last year, from 25 days down to 20 days.

"For those looking to buy, Christmas could be a good time, as properties take than little bit longer to sell and there is less competition when it comes to putting in a bid for a home.