ESPC: Homebuyers picked up bargains at the end of 2023

Buyers in Scotland took advantage of the high levels of competition in the market between November January, research suggests.

Analysis by Scottish property portal ESPC has identified “increasingly savvy bids” from buyers to secure properties. 

Properties attained 101.5% of their Home Report valuations during this time, down 3.1 percentage points on the same time the previous year, the research found.

There were some bargains to be had too, 72.3% of homes sold for at least their Home Report valuation, compared with 84.5% the previous year.

In line with ESPC’s previous House Price Report, East Lothian properties experienced the largest decline in the amount of Home Report valuation paid by buyers, with a decline of 5.6 percentage points to 101.2%. This was closely followed by the Borders, where homes attained an average of 99.3%, down 5 percentage points on the same time last year.

Almost a fifth of properties went to a closing date, down from 26.4%, in line with the increasing volume of properties on the market, increasing choice for buyers.

Across the market, the research found the average selling price for properties across Edinburgh, the Lothians, Fife, and the Borders decreased 4.4% during the three-month period to £271,106.

Property sales volumes increased 2.8% year-on-year, while new property listings increased by 13.6% annually.

Homes took a median time of 24 days to sell, five days slower than the same time the previous year, the research found.

Paul Hilton, chief executive of ESPC, said: “November to January is typically a much quieter time for the property market, however, it’s clear to see that this wasn’t the case this time. 

“The market appears fairly steady overall, and all the signs point to increasing numbers of first-time buyers coming into the market, which is very welcome news after a very difficult period financially for many in their position. 

“Our latest report also indicates an increase in seller confidence in the market, which is again welcome news to help reinvigorate proceedings.

"There’s been a healthy increase in property listings, which is great news for buyers too. We can see the effects of rising numbers of properties coming on to the market – fewer closing dates and lower overbids are all examples of this – but it’s important to remember that this isn’t negative news for sellers, who can also reap the benefits in their onward property purchases. An increase in the volume of properties listed for offers over, rather than a fixed price, also demonstrates confidence and optimism in the market once again.”