House Price Report September 2022
Property market data: Key points
- During July-September 2022, the average selling price of property across Edinburgh, the Lothians, Fife and the Borders rose 9.4% year-on-year to £299,649.
- Sales volumes dropped by 6.9% annually during this period, while new property listings increased by 2.5%.
- The median selling time of property was 14 days.
- On average, properties attained 108.4% of their Home Report valuations at sale.
- 36.2% of properties went to a closing date.
Demand for properties continues to thrive despite recent economic uncertainty
It is fair to say the dynamics of the housing market are currently changing due to the current political and economic challenges. The unprecedented changes in the financial market in September following the mini-budget and an increase in the Bank of England base rate to 2.25% (an increase from 0.25% at the start of 2022), coupled with the cost-of-living increases and rising energy bills, infer that there may be a slightly different property landscape ahead.
However, the housing market in Scotland has traditionally remained robust and we don’t anticipate any immediate change in this. Looking at July-September 2022, demand across the property market continued to thrive with the average selling price across Edinburgh, the Lothians, Fife and the Borders increasing by 9.4% year-on-year to £299,649.
The highest price increases were seen in West Lothian where market activity has increased in recent months thanks to buyers seeking larger, more affordable homes within easy reach of the Capital. In this area, property selling prices rose 19.8% to £248,871. West Fife and Kinross also reported high price increases, with an average selling price of £229,547 – 13.9% higher year-on-year.
Dunfermline – which continues to be a hotspot for first-time buyers who can enjoy the benefits of suburban living balanced with excellent transport links to Edinburgh – saw an average selling price increase of 11.7%, taking it up to £221,640 annually.
Overall, the City of Edinburgh saw average property selling prices rise 9.6%, taking the average to £317,997. In the city centre, prices rose 10.9% annually to £354,224 Following a period of high demand for properties in the past year, two-bedroom flats and three-bedroom houses continued to be particularly popular with Edinburgh buyers.
Three-bedroom houses in Corstorphine were some of the most expensive property in Edinburgh, selling for an average of £425,095 in July-September 2022, an increase of 5.3% since the same time period last year. The biggest price increase was two-bedroom flats in Morningside, which rose by 26.1% to £377,475. This was followed by two-bedroom flats in Corstorphine which rose by 17.8% to £238,639 and two-bedroom flats in Leith which were sold for an average of £248,647 – up 10.2% annually.
The most popular property in Dunfermline was four-bedroom houses where the selling price was up 11.8% year-on-year, bringing the new average selling price to £334,068. The average selling price of two-bedroom flats in the city rose by 6.5% to £124,195.
Consistent demand for housing
The post-pandemic era has seen a competitive property market with a distinct lack of housing stock, coupled with high selling prices and quick selling times. The changing economic market and mortgage product availability will likely impact this in the coming months, but evidence from the last three months suggests that to date there is still seller confidence in the market, whilst buyers remained competitive for the right property. Over the past three months, sales volumes across Edinburgh, the Lothians, Fife and the Borders reduced by 6.9%, while new property listings were up by 2.5%.
Two-bedroom flats in Leith sold in the highest volumes during this period, with levels up 24% annually. This was followed by three-bedroom houses in Corstorphine and Dunfermline, rising by 36.7% and 16.1% respectively.
Sellers in Dunfermline were the most active, with the highest volume of properties listed for sale in this area during July-September 2022, with insertions volumes rising 19.1% annually. Leith also saw an increase here, with insertions rising by 7.3% year-on-year. However, Corstorphine and Newington saw declines of 10.6% and 30.1% respectively.
Buyers still willing to pay significantly over Home Report value to secure their dream home.
With the current economic crisis, we would anticipate that the market softens and that property sellers need to set realistic expectations on what their property will achieve, as buyer demand for quality local housing stock remains steady.
In July-September 2022, properties attained 108.4% of their Home Report value on average – 2 percentage points higher than the same period last year. The number of homes going to a closing date fell by 1.1% to 36.2%
East Lothian attained the most over Home Report valuation, with properties achieving 111.1% of their valuations on average – 0.5% higher year-on-year. This was followed by West Fife and Kinross where the percentage of Home Report valuation attained was 108.7% (a 1.7% increase year-on-year).
Edinburgh continued to be a desirable place to live with the area experiencing the biggest percentage change in Home Report valuation with an increase of 2.5% taking the new average to 108.1%.
Strong competition for buyers and sellers
Despite the recent negative media sentiment, the property market in Edinburgh, the Lothians, Fife and the Borders market continued to thrive with buyers and sellers facing strong competition.
The median time for properties to go under offer was 14 days, no change from the previous year.
Homes sold the fastest in West Fife and Kinross, in a median time of 11 days. Meanwhile, properties in East Lothian and Midlothian also performed strongly, with a median selling time of 13 days.
Looking at Edinburgh specifically, the fastest-selling homes could be found in the East of the city with a median selling time of 14 days. When analysing specific housing types, three-bedroom flats in Leith sold quickest in just nine days.
Three-bedroom houses and one and two-bedroom flats in Dunfermline also sold quickly, all going under offer in 10 days.
What does it all mean?
Paul Hilton, CEO of ESPC, explains: “The last quarter has been another strong three months for the market with lots of buyer and seller activity. Whilst the headlines about rising interest rates will in the short-term cause some buyers and sellers to pause for thought, we do expect to see a continued demand for property in the coming weeks and months.
“July-September 2022 was another busy period for the property market with buyers still willing to pay over the Home Report valuation for many properties.
“Leith, Corstorphine and Dunfermline continue to be hotspots for young families and professionals, while Edinburgh city centre remains a desirable place to live with the number of properties going significantly over the Home Report valuation at a new high.
“It is hard to predict what will happen over the next few months, but historically purchasing a home has been a sensible long-term investment.
“If you are thinking of buying or selling a home in Edinburgh, the Lothians, Fife or the Borders, get in touch with your local ESPC solicitor estate agent today.”FIND OUT HOW MUCH YOUR HOME IS WORTH
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