The latest ESPC House Price Report reveals a slowdown in the property market in Edinburgh, the Lothians, Fife and the Borders.
Data from July to September 2023 shows that the average selling price for properties in these areas fell by 5% year-on-year to £281,513. Sales volumes also decreased by 15.9%, and new property listings declined by 3.1%.
Paul Hilton, CEO of ESPC, said: “July-September 2023 has clearly been a slower time for the Scottish property market, particularly as we are making comparisons to the extraordinary activity we have seen over the two or three previous summers.”
Regional variations were notable. The Scottish Borders saw the largest decline in average selling prices, down 11.4% to £224,464. Conversely, East Fife recorded an 11% increase, with a new average of £317,081. In Edinburgh, the average selling price stood at £298,495, marking a 5.3% decline from last year.
Within Edinburgh, the city centre experienced a 12.8% decrease in average selling prices, falling to £310,069. This was attributed to fewer high-value properties being sold compared to the same period last year. Meanwhile, average selling prices in the North West and South West suburbs of the city increased by 10.1% and 2.2%, respectively.
Hilton added: “The impact of the current financial climate has clearly been felt, with many buyers and sellers cautious about affordability, mortgages and finances overall.”
The report also highlighted changes in buyer behaviour. On average, homes achieved 103.9% of their Home Report valuation, a decrease of 4.4 percentage points compared to the same period in 2022. The most significant declines were in East Lothian and West Lothian, where buyers paid 6.1 percentage points less than last year.
Properties took a median of 20 days to go under offer, an increase of six days compared to the same period last year. In terms of property types, two-bedroom flats in the popular area of Bonnington were the quickest to sell, with a median selling time of just nine days.
Sales volumes and new listings both declined, with a 15.9% decrease in sales volumes and a 3.1% decrease in new property listings. Hilton concluded: “While some of these figures may appear concerning, it is important to remember that the property prices and demand are not falling as such, rather returning to a more normal base level.”
