Property Market Highlights
- Average selling prices rose 5.3% year-on-year between September & November
- Properties sold for 102.1% of their home report valuation – down slightly year-on-year
- Scotland most expensive part of UK to be a landlord after budget hike
- Scotland tops UK prime property charts
Average Selling Prices Rose 5.3% Year-on-Year Between September & November
The property market across one of Scotland’s key local markets (Edinburgh, the Lothians, Fife, and the Borders) experienced a sizeable annual surge according to ESPC, with average selling prices rising by 5.3% between September and November 2024 – bringing the new average to £286,263.
Most regions enjoyed a healthy increase in their average selling prices. West Fife & Kinross led the way with an impressive 11.2% annual rise, bringing the average price to £228,389, while The Borders also saw a significant 9.1% boost, with properties now averaging £214,973.
Unsurprisingly, Edinburgh remained the most expensive region to buy a home, with the average selling price climbing 4.3% to £306,320. The city centre experienced a substantial 8.8% year-on-year increase, setting the new average at £342,540, while the Grange area stood out for those seeking luxury, with average selling prices reaching £611,866 – nearly double the city’s overall average.
In Dunfermline, the average selling price soared by 20.2% to £228,574 compared to the previous year. Interestingly, two-bedroom flats in Dunfermline remain the most affordable option, averaging £124,541. This affordability, combined with the city’s appeal to buyers at various life stages, has driven high sales volumes, particularly for two-bedroom properties. The increasing popularity of three- and four-bedroom houses has also contributed to the significant rise in average prices.
Meanwhile, the bargains continued in Jedburgh in the Scottish Borders, which offered buyers the most affordable homes at an average price of £143,467 – making it an attractive option for the budget-conscious.
Properties Sold for 102.1% of Their Home Report Valuation – Down Slightly Year-on-Year
According to the latest data published by ESPC, homes across Edinburgh, the Lothians, Fife, and the Borders achieved an impressive 102.1% of their Home Report valuation on average between September and November. This slight dip of just 0.6 percentage points from the same period last year highlights the market’s stability and offers reassurance to sellers about its predictability.
In particular, West Fife and Kinross stood out, with buyers paying 103.6% of the Home Report valuation on average, reflecting the high demand in this area. West Lothian also saw a marginal increase, with properties achieving 100.1% of their valuation.
For budget-conscious buyers, the Scottish Borders provided the best value, with homes selling at 99.5% of their Home Report valuation on average – making it the most attractive option for those looking to get more for their money. Meanwhile, the popular Edinburgh suburb of Willowbrae saw the highest premiums, with properties attaining 107.9% of their Home Report valuation at sale, indicating strong demand for this family-friendly area.
Overall, 75.5% of properties sold for at least their Home Report valuation, slightly down from 76.7% last year but still demonstrating a busy, robust market.
Scotland the Most Expensive Part of UK to be a Landlord After Budget Hike
The Scottish Government’s recently unveiled Budget has come under fire, with critics arguing the measures fall short of tackling the persistent housing crisis. Propertymark reports that a key point of contention is the decision to increase the Additional Dwelling Supplement (ADS), making Scotland the most expensive nation in the UK for landlords.
The ADS is an additional tax applied to the purchase of second homes, rental properties, or holiday homes in Scotland on top of the standard Land and Buildings Transaction Tax (LBTT). The government’s decision to raise the ADS from 6% to 8% has had a mixed reception given the high demand for privately rented properties, with some arguing the move is out of touch with Scotland’s housing needs.
On a less controversial note, however, the Budget includes a significant investment in affordable housing. Under the initiative to end child poverty, an additional £768 million has been allocated to the Affordable Housing Supply Programme. This funding will support the acquisition of over 8,000 new properties over the next year as part of the government’s ambitious goal to deliver 110,000 affordable homes by 2032.
Scotland Tops UK Prime Property Charts
As reported by Scottish Financial News, the Scottish prime housing market is set for remarkable growth, with a projected five-year increase of 21.0%. This impressive forecast positions Scotland as a leader in the prime property sector, showcasing its resilience and robust performance.
According to the article, the prime market (which typically includes the top 5% to 10% of properties) is experiencing healthy demand, with buyers particularly interested in energy-efficient properties located near local amenities, workplaces, and top-performing state schools. Additionally, commutable country areas with good access to Scottish cities and scenic waterfront locations remain highly sought-after.
However, the article suggests the recent increase in Land and Buildings Transaction Tax (LBTT) Additional Dwelling Supplement (ADS) from 6% to 8% could present challenges for the private rented sector, putting further pressure on private landlord finances and potentially leading to higher Scottish rents – which have already risen by nearly 50% in the last five years.
Despite this, however, experts note that the market has been adjusting to broader economic challenges while achieving strong premiums and record prices for top-tier properties. Moreover, the recent government Budget, which kept rates of income tax, VAT, and employee-paid National Insurance the same, seems to have maintained buyer confidence so far – meaning sensible and realistic pricing remains crucial to keep the market dynamic and competitive.
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