ESPC House Price Report: February 2024
Property Market Data - Key Points:
- Property sales volumes across Edinburgh, the Lothians, Fife and the Borders rose by 13.4% year-on-year during December 2023 – February 2024.
- The volume of new properties coming to the market rose 21.8%.
- The average property selling price saw a modest decrease of 0.9% annually to £271,624.
- Properties took a median time of 27 days to sell, five days slower year-on-year.
- Homes achieved 101.2% of their Home Report valuation on average, down 2.3 percentage points.
- 19.6% of properties went to a closing date.
What were property sales like in February 2024?
The volume of properties sold in Edinburgh, the Lothians, Fife and the Borders during December 2023-February 2024 rose 13.4% annually, highlighting increasing confidence in the market from homeowners compared to the same time last year.
If we look at the top ten areas where properties sold in the highest volumes, trendy Leith was top of the list, followed by family-friendly Corstorphine – where sales volumes were up a staggering 105.3% - with Dunfermline in third place, where interestingly, sales volumes were down 15.4%. However, Dunfermline offered the highest number of new property insertions, so there was a huge amount of choice for buyers in this area, which can affect sales volumes as buyers take more time to choose their future home.
Inside the top ten were three Midlothian areas, hinting at increasing demand for commuter-friendly locations close to Edinburgh. Bonnyrigg saw a 64% rise in properties selling, while in Dalkeith, sales volumes increased substantially, by 89.5%. Perennially popular Penicuik was also in the top ten, with a modest sales volume increase of 3.1%.
Unsurprisingly, two-bedroom flats in Leith were yet again the property type which sold in the highest volumes, increasing 26.5% annually. One-bedroom flats in Leith were the second most-popular property type with buyers, with sales volumes up 21.7%.
Three-bedroom houses in Dunfermline were the third most-popular property type, with sales volumes up 30% year-on-year.
How many homes came onto the market in February 2024?
The volume of new properties coming onto the market rose by a significant margin of 21.8% during December-February, indicating that currently, buyers have plentiful options to choose from.
Dunfermline had the most properties listed for sale, with insertions up 22.9%, followed by Leith, where levels were 19.7% higher. Third-placed Corstorphine listed 6.8% more properties than the same time last year. Ever-popular Musselburgh was fourth on the list, but the level of properties coming onto the market was certainly slower here than in previous years, with volumes down 12.3%.
ESPC data highlights that there were substantial increases in the volume of one-bedroom flats coming onto the market compared to the previous year; perhaps in line with ongoing consultation around rental legislation, we may be seeing the impact of landlords with a portfolio of one-bedroom flats choosing to exit the rental market.
What were property prices like in February 2024?
The average selling price of properties across Edinburgh, the Lothians, Fife and the Borders stayed much the same as the previous year during the three months of December 2023 – February 2024, declining by a modest 0.9% to £271,624.
If we examine the specific market areas, we can see much variation in the demand during what is typically a quieter period for the property market. Homes in West Fife & Kinross were under high demand, as property prices here rose 5% year-on-year to an average of £224,165. By contrast, neighbouring East Fife saw a reversal in its fortunes, with the average selling price down 10.6% to £251,938 – however, this is likely due to a spike in the number of property sales for lower-priced homes skewing the overall figures, with a sharp rise in the volume of homes selling in this area within LBTT band one (i.e., under £145,000).
In line with the West Fife & Kinross average, the city of Dunfermline saw average selling prices rise 4.3% to £212,600.
In Edinburgh, property prices were much the same as the previous year, with a small decrease of 1.4%, meaning the average price in the Capital was £286,675. The popular East of the city once again saw an increase in property prices, rising 8.1% annually, meaning the average in this area was £263,981. In the sought-after Edinburgh South West, average selling prices were 10.4% higher year-on-year, at £310,629 on average, while in the North West of Edinburgh, property prices were 17.3% down, to £261,657.
The best-performing property type in Edinburgh was three-bedroom houses in the popular family suburbs of Currie, Balerno and Juniper Green. This property type experienced a 13.6% annual increase in selling price, up to £361,247.
The most affordable property type overall was two-bedroom flats in Dunfermline, with an average selling price of £136,909. In Edinburgh, the most affordable property type was once again, one-bedroom flats in Gorgie, with a price tag of £149,981 on average.
85% of sellers listed their homes for offers over, up from 77.5% the previous year, showing that there is currently high confidence in the market, with sellers feeling reassured that their properties can still attract a premium, even with increasing competition.
How much of the Home Report valuation did buyers pay in February 2024?
During December-February, the average amount of the Home Report valuation achieved by homes in Edinburgh, the Lothians, Fife and the Borders was 101.2%, which is 2.3 percentage points lower than the same time the previous year. While this is a decrease, this is good news for buyers, and indeed for sellers with onward purchases to make, and could be seen to reinvigorate the market after several years of buyers being expected to pay huge premiums for properties, which impacts affordability and buyers’ ability to purchase.
All areas were affected by a decline in the amount of the valuation price paid; the worst-affected area was East Fife, where buyers paid 4.4 percentage points less annually, bidding 100.8% of the Home Report valuation on average. The least affected area was West Fife & Kinross, where homes sold for 101% of their valuation price, just 0.7 percentage points lower annually.
Buyers continued to pay the highest premium for homes in highly sought-after East Lothian – properties here achieved 102% of their valuation figure on average. By contrast, buyers could snap up a bargain in the Borders, with homes selling for 99.5% of their Home Report valuation.
In Edinburgh, properties achieved 101.3% of their valuation figure on average, which is down 2.1 percentage points annually. The only property type in the Capital which saw a notable increase was two-bedroom flats in the Trinity, Newhaven and Inverleith area; this type of property experienced a rise of 3.4 percentage points, with buyers paying 101.2% to secure a home here.
70.6% of homes for sale during this period sold for at least their Home Report valuation, down from 80.1% during the same time last year. This may be indicative of more options for buyers, with properties spending longer on the market and buyers feeling less pressure to make significant bids to secure their ideal home.
How long did properties take to go under offer in February 2024?
Properties for sale in Edinburgh, the Lothians, Fife and the Borders had a median selling time of 27 days during December-February, which is five days slower year-on-year.
Homes in West Fife & Kinross were the quickest sellers overall, going under offer in 22 days, which is one day faster annually. Highlighting more competition in these neighbouring regions, East Fife homes sold four days faster than the same time last year, with a median selling time of 26 days.
Homes in the Borders sold in 27 days, matching the overall average, however this is 16 days slower year-on-year. West Lothian properties were the slowest to be snapped up, taking 39 days to go under offer – an increase of 24 days compared to last year.
Looking at Edinburgh, homes in the East of the city sold the fastest, in 22 days. This is the same speed at which these properties sold last year, which indicates that buyers are taking their time to make a decision on the property they want to buy – with more options on the market, there is more time to be choosy, meaning property selling times are longer.
If we look at specific property types, Musselburgh was home to the top two fastest selling. Two-bedroom houses in Musselburgh sold in a median time of just 11 days, which is eight days faster annually. This was closely followed by two-bed flats in Musselburgh, taking 15 days to go under offer – also eight days faster than the same time last year.
19.6% of properties for sale went to a closing date, which is down from 22.8% in December 2022-February 2023, and down further from 34% in December 2021-February 2022. This is a huge indication that larger volumes of homes on the market are experiencing a reduced need for closing dates currently, with buyers having much more choice and less need to be competitive.
What does it mean for the local property market?
Paul Hilton, CEO of ESPC, explains: “The property market during the last three months appears to be working in buyers’ favour, which can only be good news for the market, and for sellers who plan to make onward purchases. A higher volume of homes for sale means that in turn, homes sell at a slower pace, fewer closing dates are set, and there is a reduced need to make significant overbids to secure homes. We need buyers with intention and drive, and for the market to make it possible for them to purchase – this appears to be the case currently, with a good balance of buyers and sellers compared to previous years, which will help everyone move on up the ladder. This is filtering through to sellers too, who are continuing to show confidence in the market, by listing their homes at offers over and continuing to list their homes in droves, despite news of increased competition.
“Increasing options on the market means that sellers need to work closely with their solicitor estate agent to develop the correct pricing strategy and ensure their home looks its most appealing, to stand out in a crowded market and grab the attention of buyers who are presented with a wealth of options.
“It’s incredibly interesting to see where demand currently lies, with our data indicating strong buyer interest in areas that are traditionally more affordable than many parts of Edinburgh, East Fife and East Lothian, with Dunfermline, Leith, Musselburgh and Corstorphine proving especially popular month after month. Yet again, we’re seeing higher volumes of one-bed homes coming onto the market, especially in first-time buyer hotspots such as Leith.
“If you’re thinking of buying or selling a property in Edinburgh, the Lothians, Fife, or the Borders, contact your local ESPC solicitor estate agent today.”
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