From the Bank of England’s base rate hike of 2% to 2.25% since the start of the year, through the mini-budget in September, to the cost of living and energy crisis – the Scottish housing market seems hugely unaffected. Whilst there might be a different property landscape ahead, the market across Edinburgh, the Lothians, Fife and the Borders remained robust during July-September 2022, with the average property selling price up 9.4% year on year (YOY), now at £299,649.
Properties in West Lothian experienced the highest price increases of 19.8%, taking the average up to £248,871. This was followed by West Fife and Kinross where the average property selling price rose by 13.9% YOY to £229,547. Dunfermline, which continued to be popular amongst first time buyers, also reported a high price increase of 11.7% YOY to £221,640.
The average property in Edinburgh sold for £317,997 in July-September 2022, 9.6% higher when compared to the same time last year. By property type, two bedroom flats in Morningside increased the most in price (26.1% on average to £377,475), followed by two bedroom flats in Corstorphine and Leith (up 17.8% to £238,639 and 10.2% YOY to £248,647 respectively).
Sales volumes down but new listings up
Between July and September 2022, sales volumes across Edinburgh, the Lothians, Fife and the Borders fell by 6.9% annually, whilst the number of new property listings increased by 2.5%.
Two bedroom flats in Leith sold in the highest numbers over the past three months, up 24% compared to the same period in 2021. Three bedroom houses in Corstorphine and Dunfermline also sold in significant volumes, rising by 36.7% and 16.1% respectively.
When it come to new properties listed for sale during the past three months, Dunfermline saw the highest increase in insertion volumes, up 19.1% YOY. Sellers in Leith were also active with new listings increasing 7.3% annually, whilst the number of new insertions in Corstorphine and Newington dropped by 10.6% and 30.1% respectively.
Properties selling over Home Report valuations
As buyers remained competitive for quality housing stock, properties across Edinburgh, the Lothians, Fife and the Borders achieved on average 108.4% of their Home Report valuation. This is an increase of 2% from July-September 2021. The volume of homes going to a closing date dropped marginally to 36.2% (from 37.3% last year).
To secure their dream home, buyers in East Lothian paid the most over Home Report valuation – 111.1% (a 0.5% increase YOY), followed by purchasers in West Fife and Kinross – 108.7% (1.7% higher YOY).
The biggest percentage change in Home Report valuation (an increase of 2.5% YOY) was recorded in the capital, where properties achieved 108.1% of their valuation on average.
Fierce competition for buyers and sellers continues
During July-September 2022, the median time for properties across Edinburgh, the Lothians, Fife and the Borders to go under offer was 14 days (unchanged from the same time last year). The fastest selling homes could be found in West Fife and Kinross, where the median selling time was 11 days, whereas properties in East Lothian and Midlothian took slightly longer i.e. 13 days to sell.
Analysing Edinburgh alone, homes in the east side sold the fastest in a median time of 14 days. By property type, it was three bedroom flats in Leith that performed the best, selling in just nine days.
Paul Hilton, CEO of ESPC, said: “The last quarter has been another strong three months for the market with lots of buyer and seller activity. Whilst the headlines about rising interest rates will in the short-term cause some buyers and sellers to pause for thought, we do expect to see a continued demand for property in the coming weeks and months.
“July-September 2022 was another busy period for the property market with buyers still willing to pay over the Home Report valuation for many properties.
“Leith, Corstorphine and Dunfermline continue to be hotspots for young families and professionals, while Edinburgh city centre remains a desirable place to live with the number of properties going significantly over the Home Report valuation at a new high.
“It is hard to predict what will happen over the next few months, but historically purchasing a home has been a sensible long-term investment.”