The housing activity across Edinburgh, the Lothians, Fife and the Borders is begging to return to pre-pandemic levels, with sales volumes down 21.6% year on year during January-March 2022.
The highest sales volumes were recorded for two bedroom flats in Leith, however, this was still down 39.1% when compared to the first quarter in 2021.
The volume of new property listings, on the other hand, rose slightly by 2.1% year on year, with Dunfermline leading the way, although new insertions in this particular area were down 1% on the same time last year.
The Trinity area of Edinburgh was in particular high demand, as the volume of new properties listed for sale rose by 61.6% year on year.
West Lothian and East Fife enjoy significant selling price increases
During the first quarter of 2022, properties across Edinburgh, the Lothians, Fife and the Borders sold for an average of £267,941, up 3.3% on Q1 2021.
West Lothian experienced a significant increase, with the average selling price up 42.7% year on year to £283,678, as a greater number of high end properties entered the market between January and March 2022 compared to the same time last year.
This was followed by properties in East Fife, where the average selling price increased 26.5% year on year to stand at £309,417.
Interestingly, the average property in Dunfermline (the 2021 hotspot), in Q1 2022 sold for £182,173, down 6.1% on the same time last year. It was here where the most affordable property could be found at an average of £90,702 for a one bedroom flat, making Dunfermline a great opportunity for first time buyers.
The average property selling price in Edinburgh city centre remained unchanged during January-March 2022, whilst the North West suburbs enjoyed an increase of 21.7% year on year to £299,480. Three bedroom houses in Cramond, Barnton and Cammo proved popular, with the average selling price up 31.6% year on year to £508,033, followed by three bedroom houses in South Queensferry and Dalmeny where the average selling price rose 21.6% to £288,936.
Also one bedroom flats in Abbeyhill and Meadowbank were in high demand in Q1 2022, with the average selling price 17.1% higher than the same time last year, at £179,712.
Buyers willing to pay over Home Report valuation to secure a property
Increased competition across Edinburgh, the Lothians, Fife and the Borders resulted in buyers paying larger amounts above Home Report valuations, averaging at 105.9% between January and March 2022, 3.7% higher in comparison to Q1 2021.
Home buyers of properties in East Lothian and East Fife paid the most over Home Report valuation, 107.7% on average, up 3.9% and 5.2% respectively. However, the biggest increase of 5.8% was recorded in West Lothian, where properties achieved 106.6% of the valuation on average.
Meanwhile, all areas in the capital city enjoyed a rise in the amount paid over Home Report valuation, with properties in East Edinburgh achieving the highest amount, 107.2% on average, up 5.1% year on year. By property type, three bedroom houses in Cramond, Barnton and Cammo saw buyers paying the most over valuation – an average of 114.9%, 11.3% higher than the same time last year.
During January-March 2022, 33.6% of properties went to a closing date, an increase from 26.7% last year.
Fierce competition leads to reduced selling times
Homes throughout Edinburgh, the Lothians, Fife and the Borders sold seven days faster in Q1 2022 compared to the same time last year, with a median selling time of 18 days, although it is important to remember that in Q1 2021 the market’s activity was restricted by the second national lockdown.
Midlothian and East Lothian saw the quickest selling times of just 13 days (9 days and 11 days faster respectively), whereas the biggest change in the median selling time, a drop by 17 days to 20 days, was recorded in East Fife.
Looking at the property type, the fastest selling were three bedroom houses in Gorebridge, taking only 9 days on average.
The median selling time in Edinburgh dropped by six days year on year, to 21 days, with properties in the South West going under offer in just 13 days, 19 days quicker than in Q1 2021.
Two bedroom flats in Portobello and Joppa experienced the biggest reduction in the median selling time, down 24 days to 15 days. Similarly, two bedroom flats in Meadowbank and Bruntsfield recorded a material drop of 23 days, taking the median selling time to 22 days, followed by one bedroom flats in Polwarth, Shandon and Tollcross – all selling 22 days faster year on year, in 27 days.
Paul Hilton, CEO of ESPC, said: “In the first quarter of 2022, we’ve seen an interesting comparison to the same period last year, when Scotland was impacted by the second national lockdown. Even though property sales and associated activities were permitted at that time, naturally the market was under higher pressure and moved at a different pace, so we must bear this in mind when we look at this year’s figures.
“We’re continuing to see signs that the market is calming down following the frenzied activity of the past two years, as well as signs of rising interest for out-of-town areas. With life almost back to normal, and many buyers settled into new lifestyles, we can see that there is still very strong demand for homes outside of the city centre that offer great transport links, where a larger property is more affordable for many. Areas such as West Lothian and Midlothian are seeing significant leaps in demand, while we’re continuing to see strong interest for East Lothian and East Fife – regions which have both thrived throughout the past two years. And of course, there seems to be no stopping the desire for family homes in some of Edinburgh’s most sought-after suburbs.
“Dunfermline once again offers excellent opportunity for buyers on a budget, and it’s encouraging to see rising sales for flats in Edinburgh, with more first-time buyers stepping into the market. Many areas of the city are seeing increasing sales of one-bedroom flats, and Leith continues to be incredibly popular.”
