Average House Price Scotland - ESPC House Price Report - September 2024

Property Market Data - Key Points:

• The average property selling price across Edinburgh, the Lothians, Fife and the Borders was £290,259 in July-September 2024 – 4.9% higher than the same time last year.
• Properties achieved 102.2% of the Home Report valuation on average, down 1.2 percentage points annually.
• Sales volumes rose by 19.3% year-on-year, while new property listings were up 13.5%.
• The median selling time for property was 22 days, two days slower than July-September 2023.
• 22.3% of properties went to a closing date.

Average selling prices experienced a notable annual increase

The average selling price of property in Edinburgh, the Lothians, Fife and the Borders experienced a notable annual increase of 4.9% during July-September 2024, taking the new average to £290,259.

The City of Edinburgh saw its average selling price rise 4.7% to £307,850, making it the most expensive place throughout the regions in which to buy a property. By contrast, West Fife was the most affordable region, with an average property selling price of £229,635, although this is 5.8% higher than in the same time period last year. The Borders experienced a significant 8% boost in selling prices, meaning the average cost of a property there was £240,052.

Within the Capital itself, the sought-after South of the city was the highest-priced area to buy a home, with properties in this coveted location costing £366,241 on average (9.7% more than they did in July-September 2023). The city centre experienced a substantial rise in average prices too, with a 14.1% leap taking the new average to £349,278.

The popular city of Dunfermline experienced a similar rise in fortunes, with a 9.2% annual increase in average selling prices meaning that the new average was £218,503. However, Dunfermline remained among the most affordable places overall; one-bedroom flats in the city were the cheapest properties on the market throughout Edinburgh, the Lothians, Fife and the Borders, selling for an average price of £98,150.

Buyers continued to pay closer to the Home Report valuation to secure property

Properties in Edinburgh, the Lothians, Fife and the Borders achieved 102.2% of their Home Report valuation during July-September, which is 1.2 percentage points less than in the same time last year. However, this is likely due to an increase in the volume of properties coming onto the market, in a continuation of a trend we’ve seen throughout recent months, meaning buyers are under less pressure to pay substantial premiums in order to secure a property.

Buyers paid the highest premiums in West Fife and Kinross, with successful bids sitting at 103.2% of the Home Report valuation on average. This is much the same as the levels seen in July-September 2023, with the level down just 0.3 percentage points year-on-year. By contrast, buyers were able to snag the best bargain in the Scottish Borders; homes here sold for exactly 100.0% of their valuation figure on average, which is two percentage points less than the same time last year.

Properties in the extremely popular East of Edinburgh, covering sought-after neighbourhoods such as Leith, Abbeyhill and Portobello, secured the highest premium in the Capital, with keen buyers paying 103.1% of the Home Report valuation on average. This is 0.6 percentage points down on the same time last year but indicates continuing high demand for these trendy neighbourhoods.

Sales insertions and volumes both experienced a healthy boost

The property market across Edinburgh, the Lothians, Fife and the Borders experienced an extremely healthy boost in activity during July-September 2024, with levels of property listings and property sales both significantly up on the same time last year. This is great news for buyers and sellers alike, meaning the market could move at a healthy pace, with plenty of options for buyers and onward purchasers, while sellers could feel confident in the salability of their properties.

The volume of properties coming onto the market was 13.5% higher than the same time last year, meaning that buyers had many more options to choose from, thus lowering the high demand and competitive nature of the market, and increasing the likelihood of being able to secure a property for closer to its Home Report valuation price. Dunfermline had the greatest volume of properties coming onto the market (with insertion volumes up 18.1% annually), followed by Leith, Corstorphine, Musselburgh and Liberton.

Of the properties listed for sale, 84.5% were marketed using the ‘offers over’ pricing method – 10.7 percentage points higher than the levels seen in July-September 2023, indicating high market confidence from sellers despite rising competition.

Aligning with this, sales volumes also rose annually, rocketing 19.3% year-on-year. Two-bedroom flats in Leith were once again the top-selling property type, closely followed by one-bedroom flats in Leith, signalling that there appears to be no slowing in demand for this property type in this coveted neighbourhood from buyers.

The time to sell slowed with more options on the market to consider

The median selling time of property across Edinburgh, the Lothians, Fife and the Borders was 22 days, which is two days slower than the same time last year. However, this is to be expected as buyers take more time to view the larger numbers of properties on the market, allowing them to be slightly more leisurely with their decision-making – although homes still sold in just over three weeks generally, so the market remained at a healthy pace for sellers.

West Fife and Kinross was the area where properties sold the fastest, with a median selling time of only 15 days (although this is one day slower than the same time last year). By contrast, neighbouring East Fife was the slowest-selling area, with a median selling time of 34 days – 14 days slower than July-September 2023.

West Lothian experienced the biggest shift in selling times; here, the median selling time sped up by 18 days year-on-year, with homes selling in 20 days compared to 38 days in July-September last year.

In Edinburgh, unsurprisingly the fastest-selling properties were in the East of the city, with a median selling time of 19 days.

Three-bedroom houses in Galashiels were the homes that went under offer in the quickest time, taking only eight days to be snapped up by keen buyers.

22.3% of properties for sale went to a closing date, down from 24.9% in the same time period in 2023, however this is to be expected with a larger volume of properties on the market meaning less competition for buyers.

What does it all mean for the housing market?

CEO Paul Hilton, said: “The past few months have seen some real reasons to be cheerful when it comes to the property market, and September’s report offers more of the same. There’s been a healthy boost to average selling prices, which is great news for sellers, while for buyers, the volumes of properties coming onto the market, and the reduction in the amount of Home Report valuation paid on average offers plenty of opportunities that were lacking in recent years, especially for those looking to take their first steps onto the property ladder. It’s fantastic to see a return to high confidence in the market from buyers and sellers alike, which will keep the market moving well into the autumn months.

“As ever, the East of Edinburgh and especially Leith is proving to be a mainstay when it comes to property hotspots, while Dunfermline has seen a significant leap in average selling prices which hints at increasing demand from buyers in the city. West Lothian and the Borders have also seen some positive uplifts in the data coming from these regions, which is great news for homeowners in the local area.

“With so much happening in the market, there appears to be little sign of slowing down, with high confidence and plenty of options available for those thinking of making a move. As always, ESPC solicitor estate agents are best placed to offer their local expertise and insights specific to your property search, so if you’re thinking of buying or selling a home in Edinburgh, the Lothians, Fife or the Borders, contact your local ESPC solicitor estate agent today.”