The average selling price of property in Edinburgh, the Lothians, Fife and the Borders dropped 6.6% year-on-year during September to November 2023, to £273,348, according to the latest findings from ESPC, the Scottish property portal.
This price drop was set against a backdrop of 11.8% fewer property sales and brings the average selling price closer to the figures seen in 2021, following an extensive period of high selling prices.
The data found that lower average selling prices were most noticeable across East Lothian and the Scottish Borders, where average prices were 17.1% and 16.7% lower respectively.
In East Lothian, there was a decline in the number of houses selling, and a rise in the number of flats being snapped up, with a sharp increase in the number of properties priced within the LBTT Band One bracket of £145,000 to £250,000.
This trend was mirrored in the Borders, with more homes in the region selling within the lower LBTT bands.
There was positive news for homeowners in Midlothian and East Fife; these areas recorded slight increases in average selling prices, up 1.3% and 1% respectively, compared to September-November 2022.
In addition, the average selling price for Edinburgh homes was down 4.9% annually, at £293,226.
However, homes in the South West of the city returned the biggest premium, selling for an average of £356,817 – up 16.5% year-on-year.
Conversely, properties in the North West of Edinburgh experienced the biggest change compared to the same time last year, with a 16.7% drop in average selling prices, to £252,112.
Paul Hilton, CEO of ESPC, said: “The three months to November 2023 present a very mixed bag for the local property market, with much variation in the figures across Edinburgh, the Lothians, Fife and the Borders, but we can see how this boils down to demand for certain property types, and the buyers that are currently in the market.
“Average selling prices have declined, which may mean good news for buyers but can be alarming for homeowners.
“Therefore, it’s important to look at the context of this reduction, with one reason being an influx of smaller properties coming to the market, which skews the average figures – so we want to reassure homeowners that there hasn’t been a dramatic drop in the value of property overall.”
He added: “There is much to be positive about for first-time buyers, with lower prices in certain regions, fewer closing dates reducing the expectation of bidding a high premium to secure a property, and slightly slower selling times allowing for more considered decision making, as well as more options on the market to choose from. It currently appears to be a no-nonsense market, with buyers keen to make the ‘right’ choice and sellers looking for a smooth, swift sales process across the board.
“With the Bank of England’s recent decision to pause interest rates over the last few months, it’s a positive sign that the market is picking up with more properties being listed for sale – a clear sign of homeowners being keen to make a move, coupled with increasing buyer confidence.
“As hopes rise that the interest rates will continue to be frozen, with a gradual decline in the months to come, we look forward to seeing how this could positively impact the market as we approach 2024.
“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.”
