Midlothian property market update – February 2023

Midlothian property market data – key points

The average selling price of property in Midlothian increased 6.8% between December 2022-February 2023 compared to December 2021-February 2022.
The median selling time rose to 22 days.
Sales volumes were down 14.5% year-on-year during this time, with new property listings declining by 14.1%.
Buyers paid 103.7% of Home Report valuation on average for homes in Midlothian.

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Midlothian homes see selling price increases

The post-pandemic era has seen an incredibly buoyant property market with a distinct lack of housing stock, coupled with high selling prices and quick selling times. However, we are beginning to see signs that the market is cooling down and returning to more normal levels last seen in 2019.

Midlothian recorded one of the highest price increases within ESPC locations over the past three months, with buyers taking advantage of more affordable homes within easy reach of the Capital. The average selling price for homes in Midlothian was £247,994, an increase of 6.8% annually.

By way of context, in December 2018-February 2019 which can be used to compare to the pre-pandemic norms, the average house price was £208,449, highlighting the high demand for properties in the past four years has pushed up prices.

Properties in Bonnyrigg had the highest average selling price at £253,902 – 20% higher year-on-year. Penicuik was also a popular location, with homes selling for £229,060 annually.

The most affordable property type in Midlothian was two-bedroom houses in Penicuik which sold for an average of £188,750.

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Volume of property sales down as market cools down

The market in Midlothian is rebalancing following the post-lockdown period of 2021/2022 where demand and activity in the housing market was higher than the norm. The 14.5% decline in sales volumes recorded correlates to the 14.1% lower new property listing levels, indicating that the market is responding well to the current buyer and seller demands.

Although Penicuik had the greatest volume of homes listed for sale, levels were 23.4% lower annually. In contrast, increases in sales volumes were recorded in popular locations such as Bonnyrigg (up 3.7%) and Loanhead (up 40%).

In terms of property types, three-bedroom houses in Penicuik and two-bedroom houses in Bonnyrigg performed best across Midlothian.

Buyers face strong competition for their dream home

With fewer properties on the market, it’s no surprise to see that competition levels remained strong in Midlothian during December 2022-February 2023.

The Midlothian market is continuing to perform well with homes continuing to sell quickly, albeit at a calmer pace than we’ve seen in previous months where demand significantly outweighed supply.

Due to the cost-of-living crisis and interest rates increases, we can see that buyers are taking affordability into account. With a slightly slower speed of sale and reduction in sales volumes, buyers have more choice and shop around more before settling on one particular property, which partially explains the increase in the time to sell.

The median selling time cooled slightly when we compare year-on-year average – the median time to sell now sits at 22 days, nine days slower than December 2021-February 2022 but still ahead of the same period in 2018/19 where properties went under offer in 29 days. This trend has been witnessed across many areas covered by ESPC solicitor estate agents.

Three-bedroom houses in Penicuik sold the fastest in just 16 days with no change from the previous year.

However, buyers were still willing to pay a higher price in order to secure a property in Midlothian. On average, properties attained 103.7% of their Home Report valuation, highly comparable to the 103.9% attained in the same period last year and the 101% achieved in December 2018-February 2019.

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Midlothian market remains robust

Paul Hilton, CEO of ESPC, said: “The period of December 2022-February 2023 gives a clear overview of how the rising cost of living and financial market changes have impacted the property market in Midlothian but the market remains robust with strong interest in homes and quick selling times.

“Midlothian offers a great alternative for buyers searching for homes outside of Edinburgh, as it offers excellent transport links, local amenities, green spaces and a sense of community, as well as a more affordable price tag for a range of buyers.

“The areas of Penicuik, Loanhead and Bonnyrigg are proving to be particularly popular with Midlothian buyers – all areas with great transport links into Edinburgh.

“If you are considering buying or selling in Midlothian, contact your local ESPC solicitor agent today.”

Thinking about selling?

If your property in Midlothian is currently on the market, we are still seeing interest from buyers and healthy demand. Speak with your solicitor who will keep you up to date with the latest market data and more importantly, actual selling prices in your area. It is important that you get the marketing price right and understand that it is important to set realistic expectations on what you could achieve on your sale.

Are you a first-time buyer?

As a first-time buyer, it is essential that you work with your solicitor to make sure you have all the latest, real-time data on what is happening in the market. They will help you to identify the best property types and locations for your budget.

Independent mortgage advisors

In the current climate, we are seeing lenders changing their criteria and products very quickly. Engaging with an independent mortgage adviser can help you keep on top of the dynamic world of mortgages and help you get the most competitive product for your circumstances.

Whether you are looking for first-time buyer mortgage advice, are interested in finding out more about buy-to-let mortgages or would like to re-mortgage, get in touch with the team on 0131 253 2920 or fsenquiries@espc.com