The property market in Edinburgh, the Lothians, Fife and the Borders continued strong between October and December 2022, with high interest in home buying and selling, despite the recent political and economic challenges, such as rising interest rates, deepening cost of living crisis and increasing energy bills.
Although a slight cooling of the market was observed during this period, with new property listings down by 4.3% and sales volumes reduced by 13.7% year or year (YOY) – this is more of an adjustment from the post pandemic highs and return to the norms witnessed in 2019.
Owing a home continues to be viewed as a good long term investment
In October-December 2022 buyers had to pay an average of £291,023 to secure their next home in Edinburgh, the Lothians, Fife and the Borders, 6.8% more than the same time last year. The highest annual price increases of 14.8% (to £228,514) and 14.1% (to £301,326) were recorded in Dunfermline and East Fife respectively, whereas the capital city saw an average property selling for £306,013 i.e. 5.6% up YOY.
Two bedroom flats continued to be popular amongst Edinburgh buyers, with Portobello and Joppa recording a 14.1% increase in average selling price to £302,970 for this particular property type. Also three bedroom houses in Blackhall, Davidson Mains and Silverknowes i.e. areas in high demand with families, rose in average selling price by 12% to £492,781 annually, whereas one bedroom flats in areas popular with first time buyers, such as Abbeyhill and Meadowbank, increased by 10.7% in average selling price, to £185,763.
In the last quarter of 2022, 87.7% of properties across Edinburgh, the Lothians, Fife and the Borders achieved or exceeded their Home Report valuation (up 1.4% YOY), although at slightly lower 0.6% rate, at 105.9% of their valuations on average.
Properties in East Lothian sold for the most over Home Report valuation i.e. 108.5% on average (2.6% down YOY), followed by homes in East Fife – 106.5% (2.1% lower YOY). Edinburgh recorded no annual change in Home Report valuations, with the average remaining at 105.6%.
Quick home selling times indicate confidence in the market
In October – December 2022, the property market across Edinburgh, the Lothians, Fife and the Borders continued to move fast, with properties going under offer in 18 days on average. This is two days slower than the same time last year, which might be an indication of the market’s reaction to the changing economic conditions and mortgage product availability. However, as things stand as at Q4 2022, there is still confidence in the market, with buyers facing fierce competition.
The fastest selling homes, at just 14 days, were found in East Lothian, West Fife and Kinross and West Lothian. In Edinburgh, the west of the city performed strongly, with a median home selling time of 16 days. Looking at property type, three bedroom houses in Corstorphine went under offer in 13 days.
Paul Hilton, CEO of ESPC, explains: “The period of October-December 2022 has brought significant changes politically and in the financial markets.
“In 2023 we will see the full effects of these changes but the property market in Edinburgh, the Lothians, Fife and the Borders remains robust and competitive with buyers currently continuing to pay significantly over Home Report value to secure their dream home.
“We are seeing noticeable demand for areas in Edinburgh that are popular with a range of buyers. Abbeyhill and Meadowbank have seen considerable demand from first-time buyers while South Queensferry and Dalmeny are popular with those looking for family homes.
“There has also been interest in suburbs like Corstorphine which are popular with families, and rural locations like the Scottish Borders – continuing the 2022 trend of buyers moving to areas outside Edinburgh with good transport links to the captial.”
