Edinburgh, along with its surrounding areas, has experienced a dip in average property prices. The latest report from ESPC reveals a 4.4% decrease in average selling prices, bringing them down to £271,106 for the period between November 2023 and January 2024. However, it’s not all doom and gloom, as the market has seen a positive uptick in property sales volumes by 2.8%.
Sales Volumes
Dunfermline remains a hot spot for property buyers, leading in sales volumes despite a 10.5% decrease compared to the previous year. Meanwhile, Leith emerged as the second most popular buying destination, with a 17.8% increase in sales volumes. Corstorphine outshone with a staggering 38.3% rise, signaling a shift in buyer preferences.
Property Types in Demand
Leith’s two-bedroom flats took the lead in sales volumes, showing a 16.2% year-on-year increase, closely followed by one-bedroom flats in the same area, which saw a 33.3% rise. This indicates a growing trend of first-time buyers entering the market. Outside Edinburgh, three-bedroom houses in Dunfermline were in steady demand, with an 8.3% annual increase in sales volumes.
Regional Price Movements
West Fife & Kinross and West Lothian both experienced an uptick in property prices. The former saw a modest 3.5% annual increase, while the latter enjoyed a significant 28.6% jump, reflecting the varying dynamics across different regions.
Edinburgh’s Price Dynamics
Despite the overall decrease, the South West of Edinburgh saw property prices surge by 10.7%. Conversely, the North West faced the most significant decline, with prices dropping by 19.8%. The influx of smaller, more affordable properties in the city might be contributing to the average price reduction, offering a silver lining for first-time buyers.
Market Insights and Future Outlook
Paul Hilton, CEO of ESPC, highlighted the steady nature of the market during this traditionally quieter period, “November-January is typically a much quieter time for the property market, however, it’s clear to see that this wasn’t the case this time. The market appears fairly steady overall, and all the signs point to increasing numbers of first-time buyers coming into the market, which is very welcome news after a very difficult period financially for many in their position. There has been a significant increase in the available options for buyers, especially those looking for smaller flats in Edinburgh hotspots, perhaps due to rising numbers of landlords deciding to exit the rental market and offload their properties in response to ongoing legislation around rental rates, leading to an influx of first-time buyer-friendly homes coming on to the market.”