ESPC House Price Report August 2018

Download the ESPC House Price Report August 2018 

Key Points

• The average selling price in east central Scotland rose to £248,092 between June and August 2018, which is 3.4% increase compared to the same period last year
• The number of homes sold in Edinburgh, the Lothians and Fife from June to August 2018 decreased by 5.7% – this is due to a decrease in the number of properties coming to market in previous months rather than a reflection of falling buyer demand
• The percentage of sales achieving or exceeding their Home Report valuation was 81.8% between June and August 2018, compared to 78.8% last year
• The average percentage of Home Report valuation achieved was 105% compared to 104.4% last year
• The median time to sell in east central Scotland between June and August 2018 was 18 days, which is one day slower than last year
• The number of new homes brought to market increased by 5% annually
• 88.9% of properties were marketed as ‘offers over’ compared to 83.9% last year.

More properties brought to market while selling prices stay strong

This month has seen a further increase in the number of properties brought to market compared to last year – in August 2018, there was a 5% increase annually, while in the July and June House Price reports, this figure was 3.4% and 3.2% respectively. This trend is an encouraging sign to buyers.

Average selling prices rose by 3.4% to £248,092 across east central Scotland, compared to the same period last year. The average selling price in Edinburgh rose by 4.5% to £268,151. Within the capital, two-bedroom flats in Leith, the Shore and Granton saw the biggest increase in average selling prices, rising by 18.5% to £202,173. Two-bedroom flats in Newington, Grange and Blackford also saw an increase of 18.1%, rising to £306,566.

Properties in West Lothian also saw a significant increase in average selling prices, rising by 19.3% to £233,325. This is less pronounced than the increase last month, when average selling prices in this area increased by 34.5% compared to the same period last year. The average selling price was driven up due to a greater proportion of higher value homes sold recently.

The median time to sell across east central Scotland was one day slower than last year, with half of all properties going under offer within 18 days. In Edinburgh, the median time to sell was 16 days, which is one day slower than last year.

Two-bedroom flats in Portobello and Joppa were the quickest to sell during this period, with a median selling time of 12 days, which is two days faster than last year. Three-bedroom houses in Dunfermline and two-bedroom flats in Leith were the property types that sold the most during this period.

The number of properties sold in east central Scotland between June and August 2018 decreased by 5.7% annually. This is due to fewer properties being brought to market in previous months and is not indicative of falling buyer demand.

ESPC’s PR and Content Executive Claire Flynn said: “A further increase in the number of properties coming to market in east central Scotland is encouraging. This trend is positive news for buyers, as a shortage of properties has been limiting the local property market in recent years.

"Furthermore, average selling prices are still increasing steadily in comparison to last year, and we are continuing to see very short selling times across Edinburgh, the Lothians and Fife. Reports of house price drops and falling buyer demand in the wider UK market indicate that east central Scotland continues to buck UK housing market trends."

Reflecting on Nationwide’s most recent House Price Index which reported price drops in the UK property market, Jenna Spence, Operations Director at Neilsons Solicitors and Estate Agents said: “There is no such thing as the ‘UK property market' – the UK is a patchwork of local markets each with its own dynamics and, unfortunately, much of the press commentary on the housing market focuses on what is happening in London and the south east of England. What matters most is what is happening in your local area if you are considering selling. In Edinburgh, sales prices have increased by 4.5% on average due to huge buyer demand.

“We are definitely not seeing falling buyer demand by any means. It is very much the opposite in Edinburgh and the surrounding areas as evidenced by the speed at which properties are selling and the record selling prices achieved in many cases, if properties are accurately priced, professionally marketed and well-presented for the sale. Closing dates have become the norm in most cases and supply is simply not keeping up with buyer demand.”

Robert Carroll, Managing Director of MOV8 Real Estate, added: “It's important to note that Nationwide's conclusions about house prices are based on prices in the UK as a whole and that they are restricted to properties with a mortgage provided by Nationwide, which comprises approximately 14% of mortgage lending in the UK. Monthly figures like this are always volatile, as evidenced by the 0.7% monthly increase reported by Nationwide the previous month. House price statistics from mortgage lenders make for good headlines but are less reliable for assessing longer term trends.

“In Edinburgh and the Lothians in particular, we noticed a slowing of activity in August compared with previous months. A combination of unusually good weather, school holidays and then the local schools going back undoubtedly had an effect, as they do every year (with the exception of the good weather!). We are seeing activity levels returning to healthy and normal levels in early September with buyer demand far outstripping supply of properties coming to the market and expect to see a very strong last few months of the year.”

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