Property Market Highlights
- Property prices grew significantly across Scotland’s key local markets
- Buyers hunt for better value as properties attain 102.1% of Home Report valuation at sale
- Both sales volumes and new properties coming to the market enjoyed notable growth between August and October
- UK property prices predicted to be £84,000 higher by 2029
Property Prices Grew Significantly Across Scotland’s Key Local Markets
The last few months saw Scotland’s property market buzz with activity, as the key regions of Edinburgh, the Lothians, Fife, and the Borders saw a strong 5.3% annual boost in average selling prices between August and October – lifting the figure to £288,071. This upward trend, reported in ESPC’s latest data, brings possibilities for sellers and buyers alike, with the former being an opportunity for sellers to maximise returns and the latter for buyers to invest in areas with a proven track record of growth.
Standout performances were seen across multiple regions. The Borders led the way with an impressive 9.5% jump, bringing the average price to £229,480. Edinburgh followed with a 5.8% increase, pushing its average to £308,132. East Lothian wasn’t far behind, enjoying a 5.9% rise to £282,291, while West Fife & Kinross saw their average climb by 6.4% to £226,565.
Edinburgh city centre shone especially bright, with prices soaring 13% year-on-year to an average of £349,483, underlining the strong demand for properties in the heart of the Capital. Dunfermline proved to be another star performer, with its average property prices surging 13.8% to £223,724. One-bedroom flats in this city remained a top pick, with an average price just shy of £100,000 at £99,383 – ideal for first-time buyers and those searching for affordability.
Buyers Hunt for Better Value as Properties Attain 102.1% of Home Report Valuation at Sale
Scottish properties achieved an average of 102.1% of their Home Report valuation at sale between August and October – a slight dip of 1.1 percentage points compared to last year. Despite the drop, this reflects a healthy shift in the market, with an increased number of properties available giving buyers more choice and reducing the pressure to pay above valuation. A solid 75.6% of homes sold at or above their Home Report valuation (down from 78.7% last year), showing sustained interest despite the wider availability.
West Fife & Kinross experienced the most competitive market, with properties selling for an average of 103.6% of their valuation – 0.7 percentage points higher than the previous year. West Lothian also saw growth, as buyers paid an average of 101.6% of the Home Report valuation, marking an increase of 0.8 percentage points. While for those looking for even better deals, the Borders stood out as an attractive choice, with properties selling for an average of 100.4% of their valuation – a decrease of 1.2 percentage points from the previous year.
East Edinburgh remained a sought-after hotspot, with properties reaching an impressive 103.7% of their Home Report valuation on average. Leading the charge were one-bedroom flats in popular areas such as Leith Walk, Easter Road, Pilrig, and Bonnington, which sold for 106% of their valuation – 3.6 percentage points higher than the same period last year.
Both Sales Volumes & Properties Coming to the Market for Sale Enjoyed Notable Growth Between August & October
ESPC’s latest data also highlighted significant growth in both fresh properties coming to the market and sales between August and October. The number of homes coming onto the market jumped by 11.2% compared to the previous year. This may be due to homeowners who, after locking into higher two-year fixed mortgage rates during the autumn 2022 turmoil, were eager to get their properties onto the market as soon as conditions improved.
Dunfermline led in fresh properties for sale, followed by Leith, Corstorphine, Musselburgh, and Portobello. This activity reflected strong seller confidence, with 82.4% of homeowners opting for an ‘offers over’ price – an increase of 9.8 percentage points from the same period in 2023.
Sales volumes also surged, up by 19.1% year-on-year. This rise coincided with the first mortgage rate cut since autumn 2022, prompting both prospective buyers and homeowners looking to upgrade to act quickly as the financial climate became more favourable. Leading the sales were two-bedroom flats in Leith, which saw a 17% increase in transactions, followed closely by three-bedroom houses in Dunfermline, with a 10% rise in sales.
UK Properties Predicted to be £84,000 Higher by 2029
Over the next five years, house prices across Britain are predicted to rise by an impressive 23.4%, adding an average of £84,000 to property values.
As reported in Insider, typical property values are expected to reach £442,000 by 2029, a significant jump from today’s average of £358,000 – and one that points to a steady and promising market for both homeowners and investors alike. In the shorter term, next year’s forecast shows average property prices climbing by 4%, or approximately £14,500. Moreover, Scotland is set to lead this growth, with house prices anticipated to soar by 25.8% over the five-year period – underscoring the region’s strong market momentum.
So what’s driving these predictions? Mortgage rates have influenced buyer behaviour over the past two years, and recent reductions in monthly costs are predicted to boost buyer confidence. This shift could continue driving moderate growth in property prices. As affordability is expected to improve, house price growth may gather momentum over the next few years, though short-term fluctuations could still occur due to changes in debt costs or property tax regulations.
The research behind these predictions draws on data from Oxford Economics and the Nationwide Building Society. It’s anticipated that some homeowners may hold off moving until interest rates stabilise – which could happen around 2027. By then, these homeowners may benefit from accumulated equity and years of house price growth, helping position them well in the market.
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