Podcast: An update on the property market in East Lothian

In this episode, Paul and Megan sit down with Graham White from Anderson Strathern to discuss the property market in East Lothian. Along with chatting about the stock levels, in-demand property types and price trends, the panel give their thoughts on the outlook of the East Lothian property market.

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Key Insights

Low Stock Levels and Mixed Market

East Lothian is experiencing a shortage of available properties, which is sustaining high prices, to the benefit of current sellers. While some homes are selling quickly, others—unexpectedly—are taking longer to move. This contrast has been more pronounced since the pandemic, where, previously, nearly everything was selling quickly. The imbalance in supply and demand continues to be a key driver of market dynamics.

Submarkets within East Lothian

East Lothian has a variety of property submarkets, with each area offering different advantages. For example, North Berwick, known for its scenic coastal location and high property values, attracts different buyers than Haddington, which serves more as a commuter hub. There are further submarkets even within towns, with prices varying between properties located closer to the coast, golf courses, or in more rural inland areas. This diversity helps maintain East Lothian’s overall popularity.

High Demand for Family Homes and Bungalows

Family homes, particularly in suburban or semi-rural areas, remain highly sought after. Bungalows, which are rarely built in large numbers by developers, are particularly in demand, but many existing ones have been extended into larger family homes, reducing the number of traditional bungalows available. This has resulted in bungalows being a "win-lose" situation for the market: they are popular, but their availability is shrinking due to renovations.

Price Trends and Regional Variations

Property prices in East Lothian continue to rise, in part due to the limited housing supply. For example, North Berwick's average house price is £445,000, far higher than the East Lothian average of £279,000. Other areas like Aberlady and Gullane are also known for high property prices. Meanwhile, towns like Dunbar and Haddington are catching up as more affordable options, but they are still seeing price increases driven by growing demand.

The Role of New Builds

New housing developments in East Lothian are helping to meet some of the demand, particularly from families looking to relocate from the city. These new builds are proving popular with buyers, but the process of selling and buying can be complicated by tight timescales set by builders. Often, buyers must sell their current home within six weeks to meet the requirements of new build reservation schemes, which can be stressful if their existing home hasn't yet sold.

First-time Buyers Shifting Toward Houses

A recent trend in East Lothian has been first-time buyers opting for small houses instead of flats. This shift is thought to be a post-COVID effect, with buyers placing greater emphasis on having outdoor space, such as gardens, for relaxation. While flats are still selling well, small homes in areas like Haddington, Dunbar, and Prestonpans are becoming more attractive, offering good value with three-bedroom homes available for under £200,000.

Outlook for the East Lothian Market

The market is expected to remain steady going into the end of the year and into the new year. Although there is usually a seasonal dip in winter due to shorter days and colder weather, the limited supply of homes will likely keep the market relatively active. Buyers are motivated to list homes when they find properties they want to purchase. Additionally, any potential changes to interest rates are unlikely to have a significant impact on the market, given the existing supply constraints.

 

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