Edinburgh for sale: ESPC reveals latest property market data in new House Price Report

Edinburgh-based property portal ESPC has revealed the very latest property market data for Edinburgh, the Lothians, Fife and the Scottish Borders, in its November House Price Report.

The report examines the market during September-November 2023, looking at average selling prices, time to sell, sales and listing volumes, and how much over Home Report valuation buyers needed to pay to secure a property.

Key points

The report shows that the average selling price of property in Edinburgh, the Lothians, Fife and the Borders dropped 6.6 per cent year-on-year to £273,348. The average percent of Home Report valuation attained was 4.2 percentage points lower than last year, recorded at 102.6 per cent.

The median time for properties to go under offer was 21 days, five days slower than the same time last year. And 21.4 per cent of property sales went to a closing date. Sales volumes declined 11.8 per cent annually, while new property listings increased by 3.1 per cent compared to September-November 2022.

Positive news

There was positive news for homeowners in Midlothian and East Fife; these areas recorded slight increases in average selling prices, up 1.3 per cent and 1 per cent respectively, compared to September-November 2022.

Mixed bag

If we look at Edinburgh, the report shows a very mixed picture which shows how varied the property market remains in the Capital. Overall, the average selling price for Edinburgh homes was down 4.9 per cent annually, at £293,226.

However, homes in the South West of the city returned the biggest premium, selling for an average of £356,817 – up 16.5 per cent year-on-year. Conversely, properties in the North West of Edinburgh experienced the biggest change compared to the same time last year, with a 16.7 per cent drop in average selling prices, to £252,112.

Affordable properties

The most affordable property type on the market during this period according to the report was one-bedroom flats in Dunfermline, which reported an average selling price of £101,525. If we compare this to the most affordable property in Edinburgh – a one-bed flat in Gorgie, with an average price of £147,239 – or in East Lothian – a one-bed flat in Musselburgh, selling for £158,305 – we can see how dramatically this contrasts with the rest of the market, and how much value the Dunfermline area offers to buyers with a lower budget.

Home report valuation

After several years of buyers paying a high premium above the valuation figure as par for the course, the current market saw buyers securing their next home closer to the Home Report valuation.

Following the trend seen throughout much of 2023, the average percent of Home Report valuation attained was 4.2 percentage points lower than last year, with properties achieving 102.6 per cent on average.

The ESPC report shows that 77.1 per cent of properties sold for at least their Home Report valuation during this time, indicating that the majority of properties still sold for above their valuation figure – just not for the significant premium that sellers had perhaps come to expect.

Buyers in East Fife, East Lothian and Midlothian continued to pay the highest premium to secure their next home, with an average successful bid of 103.4 per cent in East Fife, and 103 per cent in both East Lothian and Midlothian.

By contrast, buyers in the Borders and West Lothian secured properties closer to the valuation figure, with successful bids sitting at an average of 100.9 per cent in the Borders, and 101.3 per cent in West Lothian.

Within Edinburgh, the highest premiums were achieved in the popular areas of Edinburgh East and Edinburgh North, where buyers bid 103.1 per cent and 103.3 per cent respectively.

Selling time

During September-November 2023, the median time for properties to go under offer was 21 days, which is five days slower than the same time last year. The market in the City of Edinburgh also moved at pace, with a median selling time of 21 days – mirrored in East Lothian and Midlothian. While this is a few days slower than the times recorded in September-November 2022, it highlights that there are still strong levels of buyer demand in the market, with buyers who are keen to move promptly in their property journey.

Across the market, two-bedroom flats in the popular Edinburgh pocket of Bonnington went under offer the quickest, taking just 11 days to be snapped up by keen buyers. This was closely followed by two-bedroom houses in family-friendly Corstorphine, secured in only 12 days.

More homes available

Across Edinburgh, the Lothians, Fife and the Borders, there was an increase in the number of properties coming to the market during September-November 2023, with levels up 3.1 per cent compared to the same time last year. With some stabilisation around interest rates and inflation, it’s clear to see that homeowners are still keen to move.

Summary

Speaking about the latest house price report, Paul Hilton, CEO of ESPC, said: “The three months to November 2023 present a very mixed bag for the local property market, with much variation in the figures across Edinburgh, the Lothians, Fife and the Borders, but we can see how this boils down to demand for certain property types, and the buyers that are currently in the market.

“Average selling prices have declined, which may mean good news for buyers but can be alarming for homeowners. Therefore, it’s important to look at the context of this reduction, with one reason being an influx of smaller properties coming to the market, which skews the average figures – so we want to reassure homeowners that there hasn’t been a dramatic drop in the value of property overall.

“There is much to be positive about for first-time buyers, with lower prices in certain regions, fewer closing dates reducing the expectation of bidding a high premium to secure a property, and slightly slower selling times allowing for more considered decision making, as well as more options on the market to choose from. It currently appears to be a no-nonsense market, with buyers keen to make the ‘right’ choice and sellers looking for a smooth, swift sales process across the board.

“With the Bank of England’s recent decision to pause interest rates over the last few months, it’s a positive sign that the market is picking up with more properties being listed for sale – a clear sign of homeowners being keen to make a move, coupled with increasing buyer confidence. As hopes rise that the interest rates will continue to be frozen, with a gradual decline in the months to come, we look forward to seeing how this could positively impact the market as we approach 2024.”