House Price Report September 2020

In our first House Price Report since March, we look at the average selling price in Edinburgh, the Lothians, Fife and the Borders, the increase in homes coming to market and various other useful statistics to paint a picture of the Scottish property market post-lockdown.

In the three months since restrictions on the Scottish property market were relaxed, we have collected enough data to provide a broader range of statistics on the property market in Edinburgh, the Lothians, Fife and the Borders.

Please note that we are still building up our sales data due to some delays in the mortgage and sales processes, so can’t provide house price data on all individual property types at this time.

Key points

• From July to September 2020, the average property selling price in Edinburgh, the Lothians, Fife and the Borders was £266,149, up 5.2% compared to the same period last year.
• The number of homes coming to market in these areas during the last three months was up 48.2%.
• The median number of days it took for properties in these areas to be placed under offer was 21, the same as last year.
• Over the last three months, sales were down 32.3% in these areas, but this is likely because of the sales and mortgage process taking longer than usual due to high volumes.
• 83.6% of properties were sold for at least Home Report valuation compared to 77.7% last year, with the average percentage of Home Report valuation achieved at 103.6%, 0.4 percentage points up on last year.
• Over the last three months 88.1% of properties were marketed as “offers over” compared to 80.7% last year, indicating confidence in market conditions from agents and sellers.

Average property selling price in Edinburgh, the Lothians, Fife and the Borders

From 1st July to 30th September 2020, the average selling price in Edinburgh, the Lothians, Fife and the Borders was £266,149, up 5.2% compared to the same period last year. This is also an increase compared to the first quarter of the year, during which the average selling price was £240,689.

In Edinburgh, the average selling price rose by 3% year-on-year to £283,453. Properties in the Borders and East Lothian experienced the greatest year-on-year increases in average selling price, up 16.2% and 15.4% respectively. Properties in Midlothian saw an increase of 7.9%, while properties in West Fife & Kinross saw an increase of 8.8%.

Increase in homes coming to market post-lockdown

The past three months has seen a significant spike in the number of homes coming to market, up 48.2% year-on-year. In Edinburgh, there has been a 55.9% increase. This is to be expected due to lockdown restrictions preventing homes coming to market during the spring months, which would normally be a busy time of year for the property market.

Decrease in sales volume

However, in the past three months there has been a 32.3% drop in sales volume. This appears to be because of the sales and mortgage process taking longer than usual, due to the high volumes of activity after lockdown. Over the past three months, there has been a year-on-year uplift in the number of homes placed under offer.

Properties marketed as offers over

Out of the homes brought to market, 88.1% were marketed as offers over compared to just 80.7% last year, which indicates confidence in current market conditions from agents and sellers.

Percentage of Home Report valuation achieved

On average, properties in Edinburgh, the Lothians, Fife and the Borders achieved 103.6% of Home Report valuation compared to 103.2%. 83.6% of properties in these areas were sold for at least Home Report valuation compared to 77.7% last year.

Property selling times in Edinburgh, the Lothians, Fife and the Borders

The median selling time of properties in Edinburgh, the Lothians, Fife and the Borders was 21 days, the same as last year. In Edinburgh, it was 19 days, also the same as last year. Properties in West Fife & Kinross saw the greatest reduction in selling time, at 21 days compared to 27 days last year.

Top properties and areas by volume of sales and listings

The top selling property in terms of volume was three bedroom houses in Dunfermline, followed by two bedroom flats in Leith and one bedroom flats in Leith. Dunfermline and Leith were also the areas with the greatest volume of new homes coming to market.

High levels of online activity from buyers and sellers

We’re continuing to see a year-on-year increase in activity on espc.com, indicating strong interest in buying and selling remains. Viewing requests over the past three months are up 221.1% year-on-year (although this will partially be due to the change in approach to viewings, with open viewings no longer permitted), while Home Report downloads are up 60.9%. The number of property valuation requests recorded by ESPC over the past three months is also up 89.9%.

Rising selling prices in first quarter since lockdown restrictions eased

Paul Hilton, CEO of ESPC, said: “It’s been three months since restrictions were relaxed on the Scottish property market, and it’s fair to say activity has surged during that time. There has been a significant uplift in the number of homes coming to market while ESPC agents have reported being exceptionally busy with enquiries from buyers and sellers.

“Properties are selling well, with the average selling price up compared to last year and the first quarter of 2020. The increases in average selling price are particularly notable in the Scottish Borders and East Lothian.

“The sales volume over the last quarter is down compared to last year. However, that appears to be to do with the sales and mortgage process taking longer than usual due to high volumes, as we are seeing an increase in the number of homes placed under offer year-on-year.

“Some of the online figures we monitor to gauge buyer and seller engagement are still significantly up compared to last year, which suggests that strong interest in buying and selling remains.

“October brings the end of the furlough scheme and the First Home Fund is also closing to applications for this year, although it will be reopened next year. The First Home Fund has been useful for many first time buyers who might have struggled to save enough for the higher deposits currently required by lenders. This could therefore impact the demand levels for property, resulting in a drop in activity.

“However, based on the high levels of activity we have seen in recent months and what’s happened in the past, the Edinburgh and wider Scottish property market appears in a relatively stable position to tackle the economic uncertainties of the next quarter.”