New figures show big local differences in overall stable market

The Scottish housing market is proving remarkably stable according to figures from the Edinburgh Solicitors Property Centre.

The average selling price of property in Edinburgh, the Lothians, Fife and the Borders was £284,624 during May-July 2024, which is almost exactly the same as the average seen in May-July 2023 (£284,167). ESPC says this clearly demonstrates that the market has been operating well and offering great opportunities for buyers and sellers alike to make informed choices when moving home.

There are regional differences of course - the City of Edinburgh had an average selling price of £302,863 on average, 1.3% less than the same time last year, while the decline was 4.7% in East Lothian.

ESPC says the declines are likely due to a rise in the number of smaller, cheaper properties selling across the region compared to larger, more expensive ones. 

For example figures show that, year-on-year, there were more sales of one-bedroom flats in Musselburgh and two-bedroom flats in Haddington during this time, with a decline in the sales volumes of pricier properties such as three-bedroom houses in the same areas. East Lothian experienced such a boom in the post-Covid years that any decline currently is more likely to bring property prices in line with the surrounding areas, rather than reflect a deterioration in the actual value of homes in the region.

The average percentage of Home Report valuation attained across Edinburgh, the Lothians, Fife and the Borders during May-July 2024 was 102.4%, which is 1.3 percentage points less than the same time last year. This is a continuation of a trend ESPC says it’s seen in the last few months, where rising stock levels on the market mean that buyers are under less pressure to pay substantial premiums to secure properties, and can be savvier with their bids, with a higher likelihood of securing a home for closer to its Home Report valuation. 

The largest changes were recorded in East Fife and Midlothian; here, the average amount of Home Report valuation paid dropped by 2.7 percentage points to 101.3% in East Fife, and 2 percentage points to 101.7% in Midlothian.

Some 75.5% of properties sold for at least their Home Report valuation, down from 80.4% in May-July 2023.

Sales volumes rose 22.2% year-on-year across Edinburgh, the Lothians, Fife and the Borders, demonstrating strong levels of activity from keen buyers at all stages of the property ladder. 

Once again, one- and two-bedroom flats in Leith were the properties sold in the highest volumes; during May-July, they had average selling prices of £188,843 and £244,269 respectively. The two-bedroom flats experienced a significant rise in sales volumes compared to May-July 2023, with levels up 70.3% annually, while sales of one-bed flats rose 15.4% by comparison.

Also experiencing substantial leaps in sales were two-bedroom flats and three-bedroom houses in Edinburgh’s Corstorphine, with sales volumes increasing by 45% and 55% respectively compared to the same time last year.

Two-bedroom flats in Dunfermline were also incredibly popular, with a 40.9% year-on-year jump in sales volumes and an average selling price of £132,524, indicating that the city is increasingly a sought-after option for first-time buyers and young professionals, as well as property investors.

In Midlothian, three-bedroom houses in Penicuik proved particularly popular, while one- and two-bedroom flats in Musselburgh were the top sellers for East Lothian.