House Price Report July 2021
Property Market Data - Key Points
- From May to July 2021, the average selling price of homes in Edinburgh, Lothians, Fife and the Borders rose 7.6% year-on-year, to £275,623.
- More homes came onto the market, with a 61.5% rise in properties listed in the last three months than the same period in 2020. A higher volume of lower-priced properties may be the causing factor in this, as well as the impact of lockdown restrictions in 2020 affecting the figures as we would expect to see them. In comparison to 2019, the volume of properties coming to market has decreased slightly.
- There was also an increase in the number of sales, with a 234.8% increase on 2020; however, given that lockdown restrictions were in place for much of May-July 2020, comparing these figures to 2019 gives a more balanced overview, the increase being 10.6%.
- Homes also sold more quickly, with a median selling time of just 14 days – eight days faster than last year.
- Buyers were bidding more competitively, as properties achieved an average of 105.3% of their Home Report valuations.
SEARCH ALL PROPERTIES FOR SALE
Selling prices continue to rise as demand soars in the suburbs
The property market continued its upward trend during May, June, and July 2021, as buyers flocked to secure homes across Edinburgh, Lothians, Fife, and the Borders. The average selling price rose to £275,623 – up 7.6% from the same time in 2020.
Homes in East Fife saw the biggest jump in average selling prices, with properties surging 26.1% to £268,017. The area was closely followed by West Lothian, with a 23.4% increase taking the average selling price to £241,521. Popular with commuters and young families, perhaps buyers have been seeking out homes in these areas to enjoy the benefits of suburban living balanced with excellent transport links to Edinburgh.
In Edinburgh, the market continued to grow at pace in most areas, with properties in the East, North West and South West of the city performing particularly well, increasing by 14.7%, 14.1% and 14.6% respectively. However, properties in the city centre continued to slow, with a 5.4% decline in prices during May-July 2021, bringing the average selling price to £326,324.
Two-bedroom flats in the chic neighbourhoods of Hillside, Bellevue and Broughton proved particularly popular, with average selling prices rising by 63.3% to £301,401. Similarly, the average selling price of two-bedroom flats in the seaside communities of Portobello and Joppa leapt 36.1% to £285,036. The demand for three-bedroom houses in the coveted suburbs of Liberton and Gilmerton continued to prevail, with average selling prices up 33.4% to £283,251.
Local market activity remains high
The property market in Edinburgh, Lothians, Fife and the Borders experienced a buoyant quarter, with high levels of activity from both buyers and sellers.
New property listings were up by 61.5% year-on-year, with the current trend showing no sign of slowing down. There was also an increase in the number of sales, with a 234.8% increase on 2020; however, given that lockdown restrictions were in place for much of May-July 2020, comparing these figures to 2019 gives a more balanced overview, with an increase of 10.6%.
Fashionable Leith boasted the largest volume of property sales, with a 219% increase in the number of two-bedroom flats sold, and a 300% increase in one-bedroom flats sold, compared to 2020. With many rental properties traditionally to be found in this trendy area, perhaps this is a sign that investors have been selling up in this particular pocket of the city, or perhaps first-time buyers who set up home in Leith are now those moving on to become second steppers in the suburbs.
Leith also had the most properties listed for sale, closely followed by Dunfermline – both prime targets for first-time buyers.
Homes sell eight days quicker than in 2020, with suburban sales speeding up
The race to secure a purchase intensified in the period May-July 2021, with sales times decreasing as the market grew more competitive. The median sales time across Edinburgh, Lothians, Fife and the Borders is now just 14 days – eight days quicker than the same period in 2020.
Demand for homes outside of the city centre continued to rise at pace, with properties in East Lothian, Midlothian and West Fife & Kinross all selling in a median of 12 days. The biggest shift is in the Borders, however, where homes are selling 75 days faster than they did last year, now taking just 16 days to go under offer
Edinburgh’s market continues to be diverse; properties in the South West of the city sold 69 days faster than in 2020, while those in the City Centre took nine days longer than last year. Two-bedroom flats in New Town and West End bucked this trend, with a median sales time 33 days longer than 2020.
Meanwhile, the trend for three-bedroom houses continued, with this type of property selling fastest across the city, most notably in the suburbs of Currie, Balerno and Juniper Green, with a median sales time of 10 days: 72 days quicker than 2020. Again, restrictions in place in 2020 have affected these figures, as properties took longer to go under offer during the lockdown period, but the 2021 figures for this area are 16 days faster than the same period in 2019, highlighting the growing demand for family homes here.
The market remains highly competitive, with 34.9% of properties going to a closing date.
Buyers continue to pay over Home Report value to secure their dream home
As demand continues to outstrip supply, properties achieved an average of 105.3% of Home Report valuation in the period of May-July 2021, 2.3% points more than in May-July 2020.
The desirable towns of East Lothian were the most competitive, with properties selling for an average 108.9% of Home Report valuation – higher than anywhere else in Edinburgh, the Lothians, Fife, and the Borders.
In Edinburgh, much of the city saw a decline in the average amount of the Home Report valuation received, most notably for flats, which may be attributed to the sustained demand for houses, and to the volume of available properties on the market, reducing levels of competition. City Centre properties sold for an average of 102.5% of Home Report valuation (down 1.9% points year-on-year), while the suburbs saw some growth; homes in the South West saw an increase of 6% points, with homes selling for 107.3% of HRV on average.
The biggest decline was for two-bedroom flats in the affluent neighbourhoods of Marchmont and Bruntsfield, with a 6.2% decrease in the amount paid over Home Report valuation, with properties selling for closer to Home Report valuation. Conversely, two-bedroom flats in Portobello and Joppa proved to be among the most sought-after, with sales rising 9.3% to an average of 111.1% of Home Report valuation paid by buyers hoping to live beside the seaside.
Paul Hilton, CEO of ESPC, commented: “It’s been another busy quarter for the property market, with sustained growth across many areas, including in the average selling prices of property, and the amount over Home Report valuation that buyers are willing to pay.
“With more homes coming to market, and more sales than in 2020, and faster sales at that, we can safely say that demand is continuing across the market in all areas, for buyers and sellers at all stages. The trend for three-bedroom family homes in the popular suburbs of Edinburgh, and the surrounding commuter-friendly towns of East Fife, East Lothian and Midlothian, continues to rise as buyers seek more space to call their own.
“For buyers looking to get on the property ladder, now could be a great time to consider buying a home in Leith or Dunfermline, where there are plenty of fantastic and affordable options available and less competition for buyers to secure their ideal home.
“If you are considering buying or selling in any of our of these areas, get in touch with your local ESPC solicitor estate agent today.”
FIND OUT HOW MUCH YOUR HOME IS WORTH
Find out more
Find out average property selling prices for different areas and property types in our house price table.
See data for previous months and years in our historical house price spreadsheet.
Want to find out more about our House Price Reports? Read our House Price Report FAQs.
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.