What’s happened to the property market since Covid-19?
It has now been two years since the first Covid-19 lockdown was announced in March 2020, and much has happened in the Scottish property market since then.
We reflect on the changes and adjustments made to the market over the past two years, since the property market was effectively shut down in response to the pandemic, back in Spring 2020, and how it’s responded since the initial restrictions were lifted later that summer.
A timeline of Covid-19 events in the Scottish property market
16 March 2020
The UK public is asked to limit all non-essential contact and travel by the UK Government. In response, many businesses begin to work from home immediately, and property viewings are limited. ESPC solicitor estate agents respond by innovatively launching a variety of virtual services, including virtual viewings, valuations and advice services to help home buyers and sellers continue their property journeys.
17 March 2020
The UK Government announces that homeowners can apply for a mortgage payment ‘holiday’ to help with any financial hardship resulting from the restrictions. It’s estimated that more than 1.8 million homeowners took advantage of the scheme.
23 March 2020
The first national lockdown is announced across the UK, with the Scottish Government confirming it also applied in Scotland the following day. The imposed restrictions become legally enforceable on 26 March 2020.
31 March 2020
The Scottish Government advises that all house moves should be delayed where possible.
28 May 2020
Phase One of the Scottish Government’s ‘roadmap out of lockdown’ commences, which allows for ‘safe reopening of the housing market’.
29 June 2020
First Minister Nicola Sturgeon confirms that the restrictions on house moves will be relaxed. Activities such as in-person property viewings and house moves may now go ahead, subject to the necessary health and safety precautions.
July 2020
ESPC reports a significant rise in buyer and seller demand since the reopening of the property market, with valuation requests up 120% year-on-year, viewing requests up 240% and a 39% increase in the number of homes coming to market.
Also, during this time, the Scottish Government announces an LBTT holiday, raising the threshold from £145,000 to £250,000, and additional investment in the First Home Fund to stimulate the market.
5 January 2021
A second national lockdown in Scotland is imposed. The Scottish Government confirms that during this lockdown, activities connected with moving home are allowed to go ahead but advised to be postponed if possible. This means that house moves, property viewings and home valuations are permitted to go ahead, provided they are carried out safely.
31 March 2021
The LBTT holiday comes to an end, returning the threshold to £145,000 (£175,000 for first-time buyers).
1 April 2021
The First Home Fund launches for first-time buyers, but demand is so high that the fund is fully committed within a few short days and closes to new applications by 8 April.
9 August 2021
Scotland moves to ‘Beyond Level 0’ restrictions, ending legal requirements for physical distancing.
16 December 2021
Open house viewings are now permitted in Scotland, for the first time since before March 2020.
21 March 2022
The Scottish Government confirms the removal of all legal requirements regarding Covid-19, except for face coverings to be worn in most indoor settings, including when working in other peoples’ homes. All specific Covid-19 guidance on home moves is now removed.
18 April 2022
The final remaining Covid-19 restrictions around face coverings are expected to be lifted on this date.
How has the property market changed since March 2020?
The property market has seen some significant changes since March 2020, with a two-year period of activity unlike anything seen in recent times. The market slowed to an almost complete stop during Spring 2020, but the resulting pent-up demand saw the market become a hive of activity that continued from Summer 2020 through into late 2021, as changing lifestyles and priorities saw buyers and sellers alike keen to act.
Average property selling price in March 2020 vs March 2022
The average selling price for property in Edinburgh, the Lothians, Fife and the Borders in March 2020 was £240,689.
In March 2022, this figure was £267,941.
How much did buyers offer over Home Report valuation pre- and post-pandemic?
In March 2020, properties in Edinburgh, the Lothians, Fife and the Borders achieved, on average, 102.4% of their Home Report valuation.
With higher levels of demand and rising competition, this figure had risen by 3.5 percentage points in March 2022, with buyers paying 105.9% on average of the Home Report valuation.
How many properties went to closing date before and after the pandemic?
Rising demand and limited supply of properties has seen the level of closing dates set increase over the period of March 2020 – March 2022.
In March 2022, 24.6% of properties for sale in Edinburgh, the Lothians, Fife and the Borders went to a closing date, rising to 27.3% in 2021.
In March 2022, the rate of properties going to a closing date has risen to 34.2%.
What are the most popular areas to buy and sell property post-pandemic?
The most popular area to buy and sell property since April 2021 is Dunfermline, which has consistently seen the highest volumes of listings and sales throughout Edinburgh, the Lothians, Fife and the Borders. Dunfermline, with its lower property prices, excellent transport links and proximity to both city and countryside, has proven popular with many first-time buyers, or second-steppers searching for a home with more space or outdoor space.
Leith was the second-most popular area to buy and sell property from April 2021-March 2022. Popular with property investors and first-time buyers, trendy Leith offers more affordable property close to Edinburgh’s city centre.
Corstorphine, in Edinburgh North, was the third-most popular place to buy and sell property between March 2020 and March 2022. This popular suburb has been especially in demand with family buyers, due to its proximity to the city centre and excellent schooling options.
Musselburgh, in East Lothian but just six miles from Edinburgh city centre, was the fourth most-popular place for buyers and sellers across Edinburgh, the Lothians, Fife and the Borders from April 2021 - March 2022. Offering excellent schooling options, strong transport links and more affordable property prices, plus easy access to the coast and countryside, Musselburgh has seen its popularity rise since the outbreak of the Covid-19 pandemic.
The fifth most-popular place to buy and sell property in Edinburgh, the Lothians, Fife and the Borders from April 2021 – March 2022 was Newington, just south of Edinburgh city centre. Popular with families, students and property investors, Newington enjoys a sought-after central location close to green spaces and Edinburgh University.
What are most popular types of property purchased post-pandemic?
Flats and houses have both been popular property purchases post-pandemic, with two-bedroom flats and three-bedroom houses being especially popular with buyers.
Two-bedroom flats in Leith have been consistently popular, perhaps due to their affordability allowing first-time buyers to purchase a slightly larger home that accommodates home working, or to buy a home for the longer term.
However, one-bedroom flats in Leith have also been very popular since April 2021, again with their affordability (in March 2022, one-bedroom flats in Leith were priced under the LBTT threshold, with an average selling price of £165,449) meaning that more first-time buyers could take their initial steps into the property market.
Three-bedroom houses in Dunfermline were the third-most popular property purchase from April 2021-March 2022, as more buyers sought larger family homes with outdoor space, to accommodate home working and offer additional room for daily life in a changing landscape.
Two-bedroom flats in Corstorphine, Newington and Dunfermline have also been very popular property purchases.
Find out more
To find out the latest news and updates on the Scottish property market in relation to Covid-19, check our Covid-19 Information Hub.
ESPC is the home of property and we're here to help you with every step of your home buying and selling journey. If you're thinking of buying or selling a property soon, you can make use of our free phone service to be put in touch with a property expert to help answer your questions. Sellers can also get a free property valuation with ESPC agents.
