Podcast: Houses selling in 6 days and the big regeneration of Edinburgh's waterfront

In this episode of the ESPC podcast, Paul & Megan chat through the latest updates from the local property market including the rapid speed that Dunfermline homes are selling at, as well as the outlook for house prices across the rest of the year, and a deep dive into the proposed Seafield regeneration plan.

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Key Insights

Stable housing market trends

The latest ESPC House Price Report indicates a 6% annual increase in house prices across Edinburgh, Lothian, Fife, and the Scottish Borders. Despite this growth, the market remains relatively stable, with supply and demand playing a key role in price movements. The number of property sales has increased by 13.6% year-on-year, but new listings have fallen by 4.1%, leading to reduced housing stock. While price growth may continue in 2025, the market could level off depending on the supply of homes in the coming months.

Dunfermline’s fast-moving market

Homes in Dunfermline are selling at record speeds, with two-bedroom houses averaging just six days on the market - one of the fastest-selling property types in the region. This rapid pace is attributed to high demand from first-time buyers looking for affordable homes that offer additional space, such as gardens. With recent interest rate reductions improving mortgage affordability, some buyers are skipping smaller flats and going directly for larger two-bedroom properties.

Growing demand in Granton

The report shows that two-bedroom flats in Granton are now selling 12 days faster than last year, averaging just 14 days on the market. This surge in demand may be linked to speculation about waterfront regeneration and future development in the area. Similar trends were seen in Leith when investment in infrastructure - such as the tram extension - boosted property demand and values. The potential for Granton to follow a similar trajectory is driving more buyers to invest in the area now, expecting long-term price growth.

Potential Edinburgh tram line expansion

There is growing discussion about the next phase of the Edinburgh tram network expansion, with potential routes including:

• Granton and the BioQuarter (via Royal Infirmary) – This could enhance connectivity and boost property values in surrounding areas like Craigmillar and Newington.
• South Suburban Railway conversion – A group of engineering students is advocating for the reopening of the old South Suburban Railway to repurpose it for tram use, providing greater accessibility to different parts of the city.

While these plans are still in the consultation phase, they highlight Edinburgh’s commitment to improving public transport infrastructure, which could impact housing demand in key areas.

Seafield regeneration plan

A major waterfront regeneration project is being proposed for Seafield, which sits between Portobello and Leith. The plan includes building 2,700 new homes, with a focus on sustainability and green energy solutions, such as district heating systems and renewable energy sources. There is also a target of 35% affordable housing, which could provide more options for first-time buyers and lower-income families. However, the final breakdown of housing types and price points is still uncertain.

Challenges for renters and first-time buyers

Highlighting the challenges for tenants due to the rapid increase in Edinburgh rental prices, a listener on a previous podcast commented that their one-bedroom flat’s rent has risen from £650 to £1,100 in just four years. The Additional Dwelling Supplement (ADS) tax, which is 8% on second-home purchases, may discourage landlords from investing in rental properties, reducing supply and further driving up rents. Government incentives or tax breaks for landlords could help stabilise the rental market. Meanwhile, first-time buyers continue to face challenges with high deposit requirements, additional buying costs (LBTT, legal fees, etc.), and strong competition from buy-to-let investors.

The importance of community in new developments

As part of the Seafield and Granton regeneration, emphasise is placed on the need for strong community infrastructure in new developments. This includes schools, GP surgeries, shops, and local amenities, ensuring that the areas are liveable and self-sufficient. The concept of "20-minute neighbourhoods" - where residents can access most daily necessities within a short walk or cycle - was highlighted as a key urban planning goal. By fostering a sense of place and community connection, these developments could enhance residents’ well-being and contribute to a more sustainable, people-focused city.