House Price Report August 2021
Property Market Data: Key Points
- During June-August 2021, the average selling price of homes in Edinburgh, the Lothians, Fife and the Borders rose 5.8% year-on-year, to £276,703.
- The number of property sales increased by 137.5% in comparison to June-August 2020, although the lockdown restrictions during June 2020 will have skewed these figures.
- There was a 5.8% reduction in the number of properties coming onto the market.
- Lower-priced properties came onto the market in greater numbers, with the average Home Report Valuation down 4% year-on-year.
- The median selling time of homes was just 14 days, eight days quicker than 2020.
- Properties achieved an average of 106% of their Home Report valuation, up 3% points on 2020, as buyers bid more competitively.
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House prices up in many areas, with larger properties still dominating demand
The period of June-August 2021 saw average property selling prices increase in many areas, with suburban areas and larger properties continuing to experience a rise in buyer demand. During this time, the average property selling price in Edinburgh, the Lothians, Fife and the Borders was £276,703, a 5.8% increase on the same period in 2020.
West Fife & Kinross experienced the highest overall increase in average selling prices, rising 8.6% year-on-year to £197,920, with Dunfermline’s average property selling price rising 15% to £203,628, up from £177,050 in 2020.
Conversely, the Borders saw a 10.6% decline in average selling prices, at £224,176. However, a larger number of one- and two-bedroom flats coming to the market in the area is more likely to be the cause, rather than a reduction in overall property values.
Edinburgh reports a mixed bag; the Capital’s average selling price rose 4.6%, to £292,977, but if we take a closer look at the city’s regions, we see variations. The average selling price of homes in the city centre decreased 9.4% year-on-year, to £314,014, while the suburbs of North West Edinburgh experienced the biggest increase in the Capital, with prices rising 18.7% to an average of £276,315.
Two-bedroom flats in Morningside and Merchiston recorded the biggest decline in selling price, with a 14.2% decrease taking the average to £309,474 during June-August. Two-bedroom flats in Portobello and Joppa recorded some of the highest increases, as a 25.9% increase meant the average selling price was £281,154, indicating a sustained demand for coastal living.
Overall, three-bedroom houses continued to be among the most in-demand with buyers, particularly in the sought-after locale of South Queensferry. Here, three-bedroom houses had an average selling price of £318,286 – a 36.3% increase year-on-year.
Two-bedroom flats in Dunfermline were the most affordable property type, at £112,682 on average.
Buyers continue to pay over Home Report valuation
Demand continued to outweigh supply during June-August 2021, meaning buyers continued to bid over Home Report valuations in order to secure their chosen property. Overall, homes in Edinburgh, the Lothians, Fife and the Borders achieved 106% of Home Report valuation, up 3% points year-on-year.
Buyers paid more over Home Report valuation in East Lothian than anywhere else; properties here attained 109.2% of Home Report valuation on average, up 7.3% points on 2020.
The Borders saw the biggest increase in the amount paid over Home Report valuation, rising 7.4% points to 106.1%. This was closely followed by East Fife, with a 7.1% points increase taking the average to 108.7% of Home Report valuation paid.
Edinburgh City Centre saw a decline of 2.2% points year-on-year, with properties achieving an average of 102.6% of Home Report valuation. This is likely due to there being more properties on the market and buyers facing less competition, as well as an overall modest reduction in the demand for city-centre living. One-bedroom flats in the Abbeyhill and Meadowbank areas saw the steepest decline of 4.7% points year-on-year, however properties in these areas still achieved, on average, 108% of Home Report valuation.
Three-bedroom houses in the suburbs of Currie, Balerno and Juniper Green increased more than any other property type in Edinburgh, with a 14.3% points rise meaning that buyers paid an average of 113.3% of Home Report valuation.
During this time, the average Home Report valuation was down 4% year-on-year. This may be due to a larger number of lower-priced properties coming onto the market.
Properties sell more quickly across Fife, the Borders and Edinburgh’s suburbs
Sales times decreased during June-August 2021, with the median time for a property to go under offer dropping to 14 days across Edinburgh, the Lothians, Fife and the Borders – eight days quicker than last year.
Properties in West Fife & Kinross were the fastest-selling overall, taking just 10 days to go under offer: a 50% decrease on 2020’s figures.
Homes in the Borders sold 72 days faster than the same time in 2020, taking just 13 days to go under offer, while East Fife properties reported a median sales time of 12 days (68 days faster than 2020). This indicates strong buyer demand, as many continue to search for homes away from the cities, with more space to accommodate changing lifestyles and better proximity to green spaces or coastline.
The trends of Edinburgh City Centre and Edinburgh South West continued, with the City Centre’s median sales time at 25 days – seven days slower than 2020. Properties in the New Town and West End were the slowest to go under offer, with a median selling time of 44 days, 36 days slower than during June-August 2020.
Edinburgh South West saw properties going under offer in just 14 days, 86 days faster than the same time in 2020.
Once again, three-bedroom houses in Edinburgh’s suburbs saw the highest levels of demand, with buyers acting quickly to secure properties of this type. Three-bed houses in Currie, Balerno and Juniper Green, and in South Queensferry and Dalmeny both had a median selling time of just nine days, 83 days and 56 days respectively faster than 2020.
36.7% of homes went to a closing date during June-August 2021, up from 26.6% in 2020, as buyer demand intensified.
Property sales rise, while the number of properties coming to market reduces
The volume of property sales increased 137.5% year-on-year, however, as lockdown restrictions were still in place for much of June 2020, it may give us a fairer comparison to look at 2019’s figures for the same period, showing a 13.18% increase.
The number of properties coming to market declined 5.8% across Edinburgh, the Lothians, Fife and the Borders. This is potentially a sign that the post-lockdown demand is beginning to slow.
Dunfermline saw the highest volume of property sales, while two-bedroom flats in Leith had the highest sales volume, up 133.3% year-on-year. Leith also had the highest volume of properties coming to market, although this figure was actually down 4.5% on 2020.
Paul Hilton, CEO of ESPC, commented: “Although the picture largely looks the same across the property market during June to August this year, we are starting to see some changes come into play. Average sales prices are continuing to rise in many areas, particularly in coastal and countryside locations.
“As the volume of properties coming to market begins to return to the levels we saw pre-pandemic, we are still seeing higher levels of activity from buyers, which will mean that buyer demand will continue to outweigh the supply of properties available. This, in turn, may affect average selling prices in the months to come, and we may see an increase in both the amount of homes going to closing dates, and the amount over Home Report valuation that buyers are willing to pay.
“Dunfermline and Leith continue to be the two strongest locations in terms of affordability and volume of properties available, offering buyers the opportunity to purchase their first homes in these thriving areas.
“If you are considering buying or selling in any of these areas, get in touch with your local ESPC solicitor estate agent today.”
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Find out more
Find out average property selling prices for different areas and property types in our house price table.
See data for previous months and years in our historical house price spreadsheet.
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