Property Market Highlights
- Average property prices across East Central Scotland increased 5.8%, hitting £286,017
- Properties sold faster year-on-year, despite typically quieter winter period
- Homeowners dominate Scottish housing sector at 1.61 million households – up by 19% since 1999
- Scotland’s buy-to-let sector is at a 15-year low
Average Property Prices Across Scotland’s Key Markets Increased 5.8%, Hitting £286,017
Homeowners in Edinburgh, the Lothians, Fife, and the Borders had reason to celebrate between October and December 2024, as average property prices soared to £286,017 – an impressive 5.8% year-on-year increase. The recent figures published by ESPC highlight the continued market demand, even during the typically quieter months, and reflect the robust activity seen throughout the latter half of last year.
Zooming in on local areas, West Fife & Kinross led the charge with a remarkable 17.5% rise, bringing the average price to £229,004. Dunfermline, the region’s major city, saw an impressive 29.3% increase, with properties averaging £230,233. Despite this surge, however, Dunfermline remained a hotspot for affordability – with one-bedroom flats averaging just £96,475. Finally, the Borders enjoyed an 8.4% uplift, reaching £219,067.
In Edinburgh, the North West area reported a substantial 21.9% annual increase, pushing average prices to £316,219. The city centre wasn’t far behind, with a 15.1% rise to £343,793. Commenting on these findings, ESPC suggested that these areas, known for their proximity to notable state schools, may be seeing a boost due to the upcoming VAT hike on private schools.
Edinburgh’s Grange emerged as the priciest neighbourhood, with homes averaging £530,492. On the other hand, Jedburgh in the Borders offered the best affordability, with properties averaging £112,773.
Properties Sold Faster Year-on-Year, Despite Typically Quieter Winter Period
ESPC‘s latest findings contained more great news for homeowners, as properties sold between October and December 2024 flew off the market in a median of just 21 days – one day quicker than the same period in 2023.
West Fife & Kinross emerged as the fastest-selling area, with homes snapped up in just 14 days, a remarkable eight days quicker than last year. On the other end of the scale, however, East Fife saw a median selling time of 42 days – a whole eight days slower than the previous year.
Two-bedroom houses in Dunfermline and three-bedroom houses in Kelso were the hottest property types, typically selling in just nine days – an improvement of four days and two days, respectively, compared to 2023.
The strong market demand also led to an increase in the number of closing dates set, with 22.5% of properties for sale reaching this stage – up from 19.7% during the same period in 2023. Willowbrae particularly stood out, with 50% of its properties going to a closing date, reflecting the highest buyer demand in the area.
For buyers, the news suggests a dynamic market with the chance to secure desirable properties swiftly, while for sellers, the strong demand and quicker sales times offer an excellent opportunity to achieve favourable prices. A win-win in our book.
Homeowners Dominate Scottish Housing Sector at 1.61 million households – Up 19% Since 1999
According to an interesting piece recently published in Property Industry Eye, the latest Scottish Housing Survey sheds light on the pivotal roles played by Scotland’s diverse housing sectors in meeting the nation’s needs.
Over the past two decades, household numbers have surged from 2.18 million to 2.54 million, reflecting changing demographics and trends. Owner-occupied homes remain the dominant sector, accommodating 1.61 million households – a 19% increase since 1999.
Meanwhile, the private rented sector has grown by a staggering 175%, now housing 330,000 households. In contrast, social housing (affordable properties rented out by councils, associations and cooperatives) has contracted, providing 570,000 homes – a 15% decrease over the same period.
As one industry expert points out, each sector seems to serve distinct groups. The private rented sector attracts younger, more mobile tenants seeking flexibility, while social housing is overwhelmingly occupied by older individuals, those with health challenges, or lower-income families.
But what’s the takeaway? The argument is that these sectors are essential for a balanced housing market despite their differences. Experts stress the importance of fostering collaboration rather than division, as each sector addresses unique needs.
For policymakers, landlords and even estate agents, the challenge lies in promoting growth and cooperation across all sectors in order to address the nation’s evolving housing demands and create a market that meets the aspirations of all residents.
Scotland’s Buy-to-Let Sector at a 15-Year Low
This month, the Telegraph reports that Scotland’s buy-to-let market has reached its lowest level in 15 years, with landlord property purchases falling sharply.
According to the article, a combination of increased regulations, including rent controls and additional administrative requirements, has made the private rental sector less attractive to investors. The result is a significant reduction in new buy-to-let activity – signalling a noteworthy shift in Scotland’s property market dynamics.
Undoubtedly, this decline could have far-reaching consequences for the wider market. With fewer landlords, rental property availability may tighten, leading to increased competition among tenants and potentially driving up rents in the long term. At the same time, the shift away from buy-to-let investment could also open opportunities for first-time buyers and owner-occupiers, as properties previously held for rental are released onto the market, increasing stock for those looking to purchase a home.
With that in mind, how you feel about this recent development is likely to depend largely on which rung of the proverbial housing ladder you find yourself on.
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