Property market highlights:
- Property listings and sales lower, however buyer demand remains strong
- Scotland bucks the UK-wide trend with increased residential sales
- Average selling and asking prices continue to rise
- We question whether COP26 and environmental factors are influencing property buying decisions
Property listings and sales lower, however buyer demand remains strong
November was a busy month for the property market and, whilst property listings tend to be lower during the winter months, demand has still been very high from buyers.
The imbalance caused by less property listings and high demand from buyers can make what has already been a competitive market even more competitive.
According to ESPC (Edinburgh Solicitors Property Centre), in the period from September to November 2021 property sales were down 21% across Edinburgh, the Lothians and Fife compared to the same period in 2020, however the average selling price increased 2.8% and properties sold on average 2 days faster.
The period from September to November 2020 was an exceptionally busy time for the property market, so for properties to be selling even more quickly during the same period this year highlights the strong buyer demand currently present in the market.
During this period, MOV8 achieved an average of 9% above Home Report valuation on houses sold in Edinburgh, with an average selling time of just 10 days!
Scotland bucks the national trend with increased residential sales
The latest House Price Index from Registers of Scotland (ROS) highlighted that based on their forecast models the volume of residential sales in Scotland had increased 114.1% in July 2021 compared to July 2020. By contrast, England and Wales reported a decrease of 69.1% and 51.6% respectively for these time periods.
For property sale volumes to have increased again during July 2021, this shows what a buoyant market Scotland experienced during the summer months of 2021. With England and Wales not reporting the same sales volumes increases, it does present Scotland as perhaps a more active and attractive market for potential property investors or for people looking to make the move to Scotland.
Get in touch with our team today at [email protected] today to discuss your property sale or purchase.
Average selling and asking prices continue to rise
Halifax reported in their October House Price Index that the UK average property price hit a new record high of £270,027.
Looking more specifically at Scotland, Rightmove reported in their November House Price report that the average asking price for a property was £171,954. This was up 3.8% compared to November 2020. It should be noted that, in Scotland, the preference for “Offers Over” pricing strategies means that some caution must be taken when looking at asking prices as a measure of the health of the market.
Looking instead at selling prices, ESPC reports that the average selling price of a property in Edinburgh between September and November 2021 was £286,311, up just 0.2% on the same period in 2020 and higher than the UK and Scottish average.
East Lothian experienced a larger price increase in the same period, with the average selling price increasing by 8.7% year on year, now sitting at £290,231 according to ESPC data.
Whilst East Lothian outperforms the wider market, house price trends continue to be upwards across most regions in Scotland.
Did COP26 and environmental factors influence property buying decisions?
COP26 played a large part in the news during November, not just in Scotland but across the world.
With many people looking more closely at their own environmental impact, it would make sense that people’s homes would play a large part in this self-evaluation. Evidence of this does however appear to be mixed.
In November, Rightmove reported a rise of 541% year-on-year in homes for sale with electric car charging points. This is a positive for many home buyers who have already adopted or who are looking to adopt an electric car.
Energy efficiency of a home can have a large impact on the environment. The Royal Institution of Chartered Surveyors (RICS) conducted a survey in October asking how energy efficiency was potentially affecting the property market.
33% of respondents noted an increase in demand for energy efficient homes, however over 75% of respondents said the increased demand wasn’t impacting the selling prices of the more energy efficient homes.
Whilst not every property buyer is currently influenced by the energy efficiency and environmental impact of properties for sale, the ever-increasing interest in the impact of climate change and the tightening of rules and regulations can only increase the attraction of energy-efficient features to the buyers of the future.
Strong start to 2022 expected for the property market
Christmas and the festive season is traditionally a quieter time of year of the property market, however all evidence suggests that buyer demand still remains high in Scotland. This demand is likely to continue well into 2022.
Looking to the New Year it would be very reasonable to predict that, once the Christmas decorations are packed away, property listings will again rise with people looking to move home and that property prices will continue their current upward trend.
We’re here to help
If you are thinking of buying or selling a property MOV8 is perfectly placed to help. Our 5 star rated team of property experts can help guide you through each stage of the property process.
If you are thinking of selling your home or investment property, get in touch with us by calling 0345 646 0208 (Option 1) or by emailing [email protected] to organise a free valuation of your home or to get a full, transparent breakdown of the costs of selling your home.
If you are looking to buy a property as a home or investment, please call 0345 646 0208 (Option 2) or email [email protected] and we will be happy to help.
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