East Lothian property market update | April 2023
What's been happening in the East Lothian property market?
ESPC takes a closer look at how the property market in the popular region of East Lothian has fared during January-March 2023, with a detailed look at some of the most popular East Lothian areas for house-hunters.
Looking for your next home in East Lothian? Read on for more information on the current status of the housing market there.
East Lothian property market data – key points
- During the three months of January-March 2023, the average property selling price across East Lothian was £270,161 - 2.4% more than the same period last year.
- The volume of property sales in East Lothian increased by 6% year-on-year.
- The median time for a property in East Lothian to go under offer was 25 days, nine days slower annually.
- The average percentage of Home Report valuation attained in East Lothian was 104.3%, down 3.5 percentage points annually.
High demand for homes in East Lothian despite financial market uncertainty
The latest ESPC data reveals that the housing market in East Lothian is still performing strongly with the average selling price rising by 2.4% year-on-year to £270,161, despite continued wider financial market uncertainty.
The first quarter of 2023 saw the 11th consecutive rise in interest rates, by a quarter of a percentage point to 4.25% in an attempt to slow rising inflation. It follows a challenging period since the mini-budget in September 2022 coupled with the rising cost of living and changes to energy bills.
The historic harbour town of Musselburgh continues to be a popular place for first-time buyers as they continue to recognise its excellent amenities and transport links. Two-bedroom flats in Musselburgh were the most affordable property type, coming in at £171,511. This was followed by two-bedroom houses in Tranent, which sold for an average of £178,373.
The overall most affordable area in East Lothian was Prestonpans, with an average selling price of £203,587. The most expensive area to buy in East Lothian was North Berwick, coming in at £377,820.
Sales volumes increase
Market activity remained strong during January-March 2023 with more buyers coming to the market as shown in sales volumes increasing by 6% over the past year.
Dunbar continued to be popular with buyers with sales volumes increasing by 42.9%. However, the average selling price in the town declined by 18.4%, bringing it down to £286,657 – this is positive news for buyers as Dunbar property prices soared in 2020/21 due to low supply and high demand.
Musselburgh, Tranent and Haddington saw a decline in sales volumes of 20.7%, 16.7% and 8% respectively. These areas have been particularly popular with buyers over the past two years, and these figures indicate that the market is beginning to cool down.
New property listings rise
East Lothian saw a 6.5% increase in properties listed for sale in January-March 2023.
Following the trend seen in 2022, the largest volume of properties listed for sale were in Musselburgh. This was followed by Haddington and North Berwick.
Properties take longer to sell
ESPC data for the first quarter of 2023 shows selling prices remaining consistent, but that properties are taking slightly longer to sell as buyers adopt a slightly more cautious approach.
The median selling time in East Lothian was 25 days, compared to 16 days the previous year – signs that the market is moving at a more typical pace. Out of the various property types in the region, two-bed houses in Tranent were the fastest to go under off across East Lothian, selling in a median time of 11 days, five days slower year-on-year.
Two-bed flats in Musselburgh also sold quickly in 20 days, one day slower annually.
Looking at the overall picture, properties sold the fastest in Tranent with a median selling time of 14 days, five days slower compared to the same period last year.
The biggest change in selling time was recorded in North Berwick with properties taking a median time of 31 days to go under offer, 14 days slower year-on-year.
Working with their ESPC solicitor estate agent, a total of 29.1% of East Lothian sellers opted to set a closing date during January-March 2023, a decrease of 14.2% since the same period last year. In Musselburgh, this rose to 33% of homes for sale (down 10.5% annually) and Tranent saw an increase in 0.7% of homes that went to a closing date, bringing the new figure to 25%.
East Lothian buyers willing to pay more
East Lothian buyers were willing to pay over the odds to secure their dream home with buyers in the region paying more over Home Report valuation than any other ESPC area.
A total of 86.2% of properties sold for their Home Report valuation or higher, with the average property achieving 104.3% of Home Report valuation at sale – 3.5 percentage points lower than the same period in 2021.
The most desirable homes for buyers were in Dunbar with house hunters paying 105.3% of the valuation on average – a 7.3% decline annually. This was followed by Prestonpans and Tranent which were both at 104.5% - down 2.1% and up 0.7% year-on-year respectively.
What does it all mean?
Paul Hilton, CEO of ESPC, explains: “With excellent schools, transport and amenities, plus an idyllic setting between the Capital, the coast and the countryside, it is of no surprise that the East Lothian market is performing well despite financial and political uncertainty. It is promising that 86.2% of properties are selling for their Home Report valuation or higher.
“Musselburgh, Haddington and Dunbar continue to be popular with buyers seeking homes with more space and good transport links to Edinburgh.
“If you are thinking of buying or selling a home in Edinburgh, the Lothians, Fife or the Borders, get in touch with your local ESPC solicitor estate agent today.”
Home movers webinar
Buying and selling a home this year? Whether you’re upsizing, porting your mortgage or re-mortgaging, we understand it can be tricky to figure out the best course of action when selling and buying at the same time.
Join us on the 4th of May for a home movers webinar where we will help you understand what’s involved in selling a property, demystify remortgages and porting your mortgage as well as giving you an update into the latest market data.