House Price Report October 2021
Property Market Data - Key Points
- August-October 2021 was a busy quarter for the Scottish housing market, with marked differences appearing versus the same time period last year.
- Sales volumes increased 4.6% year-on-year, as more buyers came to the market.
- Average selling prices also increased, rising 2.1% to an average of £274,273 across Edinburgh, the Lothians, Fife and the Borders.
- The market remained competitive across all regions, as the volume of property coming to the market dropped by 29.9%, to take the market to more normal levels.
- Selling times were quicker, falling to a median of 14 days, while 36.4% of properties for sale went to a closing date across Edinburgh, the Lothians, Fife and the Borders.
- Buyers also bid more competitively, paying on average 106.6% of Home Report valuation, 2.6% points more than last year.
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Average selling prices report a mixed bag
The average selling price of property across Edinburgh, the Lothians, Fife and the Borders experienced a 2.1% increase year-on-year during August-October 2021 – however, looking in more depth at the figures, we can see that there are variations across the market.
Prices rose the most in West Fife and Kinross, increasing by 8.7% to an average of £208,775. This ties in with the trend we have been seeing of more buyers opting for homes in this region, due to greater space available combined with better affordability and strong transport links.
Prices also rose in Edinburgh, with a 0.7% increase taking the average selling price to £289,314. The figures for August-October show that there has been a resurgence in demand for city-centre flats too, with two-bedroom flats in the prestigious New Town and West End rising 15.5% year-on-year, and one-bedroom flats in the up-and-coming neighbourhoods of Polwarth, Shandon and Tollcross increasing by 9.4%.
However, price rises were not recorded in all areas. The average selling price of properties in the Borders reduced by 8.1%, while in East Fife, average selling prices dropped by 6.2%. This may be due to smaller, lower-priced properties having more prevalence on the current market, rather than a reduction in the value of or demand for properties in these areas overall.
The most affordable property could be found in Dunfermline, where two-bed flats sold for an average of £120,548.
Buyers continue to pay over Home Report valuation for dream homes
During August-October 2021, buyers continued to pay over the Home Report valuation when bidding to secure their chosen properties. Buyers paid 106.6% of HRV on average, 2.6% points higher than the same time in 2020.
Homes in the Borders saw the biggest rise in overbids, as buyers paid 7.3% points more than in 2020 for properties here, equalling an average of 107.5% of Home Report valuation paid.
This was closely followed by East Lothian, where homes attained 110.8% of their valuation – up 7.2% points on last year, and the highest amount attained overall across Edinburgh, the Lothians, Fife and the Borders.
Sales volumes increase, while properties coming to market reduce
The competition for properties across Edinburgh, the Lothians, Fife and the Borders continued to rise, as sales volumes increased 4.6% year-on-year – perhaps indicative of more first-time buyers taking advantage of high loan-to-value mortgages and low interest rates to secure their first home.
Two-bedroom flats in Leith sold the most, with the sales volume up 25% year-on-year.
36.4% of homes for sale during August-October 2021 went to a closing date, up from 29.2% in the same time in 2020.
This level of competition was heightened by the fact that less properties came to the market, with new property insertions down 29.9% on the same time last year.
Dunfermline had the highest volume of properties coming to the market, but these levels were down 33.3% on the same period in 2020.
The median time to sell decreases as competition heats up
The median selling time for properties in Edinburgh, the Lothians, Fife and the Borders reduced to 14 days during August-October 2021 – four days quicker than the same time in 2020.
The biggest change in median selling time occurred in the Borders, where homes were snapped up by eager buyers in 15 days, 29 days faster than August-October 2020.
In Edinburgh, the median selling time sped up, with a two-day reduction meaning properties sold in 16 days. Within the city, three-bedroom houses in Blackhall, Davidsons Mains and Silverknowes sold the fastest, in just nine days – 53 days quicker than last year.
Overall, the fastest-selling type of property was three-bedroom houses in Penicuik, which experienced a 57-day reduction in selling time, taking the median to only 8 days.
Paul Hilton, CEO of ESPC, commented, “The past three months have been another busy period for the housing market across Edinburgh, the Lothians, Fife and the Borders, and we can see that much has changed versus the same time last year, spanning prices, selling times and even the types of property generating the highest levels of interest and demand.
“Average selling prices have continued to rise in out-of-town areas, as has been a consistent pattern over the past year, but it’s good to see that demand has been building for flats in Edinburgh City Centre once more, signifying a return to pre-pandemic times and potentially a sign of more first-time buyers taking their initial steps on the property ladder.
“The volume of properties coming to market has declined over this period, which will impact the amounts over Home Report buyers are willing to pay and in turn average selling prices, as well as selling times and the level of closing dates set across the market. We expect to see this continue over the coming months and wait to see the impact that this may have on the property market.”
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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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