Property Market Highlights
- House prices continue to grow throughout Scotland.
- Properties are achieving and exceeding their Home Report valuations at sale in many areas.
- Supply and demand issues persist.
- Post-COVID lifestyle changes see people buying bigger homes further away from the city.
House Prices Continue to Increase Throughout Scotland
As we saw in our June Property Report, the average home price in Scotland increased by 8.0% compared to March 2021, sitting at an average of £181,415 according to the UK House Price Index 2022.
Property prices in Scotland continue to climb in all areas as demand outweighs supply. In Edinburgh, the Lothians and Fife, growing buyer interest has seen an average increase of 5% from £261,184 to £274,309 compared to last year.
According to ESPC, Fife saw the most significant boost of the three areas, rising 17.5% annually to £289,561. In West Lothian, sellers enjoyed an increase of 12.7% compared to last year, with an average selling price of £255,171. For sellers in Edinburgh, property prices saw an annual rise of 6.4% compared to March-May 2021.
The city’s northwest suburbs recorded the largest price boost, with a 21.4% increase and an average house price of £282,751. In South Queensferry and Dalmeny, three-bedroom houses reported a 27.6% annual increase, with an average selling price of £310,612.
In Cramond, Barnton and Cammo, three-bedroom properties sold for an average of £439,957, a rise of 29.1% due to significantly high demand in these areas over the last year. With more and more families seeking larger, more spacious homes away from the hustle and bustle of the city post-COVID, these trends are unsurprising (more on this later).
However, while average house prices have risen throughout Scotland compared to 2021, fewer properties are coming to market, with sales volumes and new property listings returning to pre-pandemic levels. This could be the beginning of slowing house prices. As Rightmove states, affordability constraints, more balance between supply and demand and seasonal price drops may contribute to slowing down price growth in the latter half of 2022.
Properties Continue to Achieve and Exceed their Home Report Valuations at Sale in Many Areas
Properties in Edinburgh, the Lothians, and Fife achieved an average of 107.4% of their Home Report valuations at sale — up 4.4% annually. While all areas recorded significant growth, Fife reported the biggest increase, with East Fife properties achieving 108.7%, West Fife and Kinross reaching 107.9%, Dunfermline enjoying 108.4%, and the Borders hitting 107.6% of their Home Report valuations.
The supply and demand imbalance continues to see properties achieve and exceed their Home Report valuations at sale throughout Scotland, making this an attractive time for sellers to put their homes on the market. As Paul Hilton, CEO of ESPC, states, while there is a reduction in the market, properties continue to sell, are achieving a premium and selling relatively quickly, with the median time properties go under offer sitting at just two weeks on average.
Supply and Demand Issues Persist
Despite the rising cost of living crisis, property price growth endures throughout the UK, with demand continuing to outstrip supply as people hurry to secure fixed mortgage rates ahead of interest changes predicted in the coming months.
Sellers continue to prefer to find their next home before finalising the sale of their own, adding to supply issues and putting cash buyers, flexible buyers and those who have already sold their property in the most favourable position for purchasing their next home quickly and smoothly.
With properties going under offer within 14 days on average and no signs of balance between supply and demand in the near future, the current situation is predicted to continue. If you’re considering buying or selling, MOV8’s 5-star rated team of property experts can confidently help you navigate the uncertain property landscape, supporting you through the process from start to finish.
Post-COVID Lifestyle Changes Driving Demand for Bigger Homes Further from the City
Three-bedroom houses in South Queensferry, Dalmeny, Cramond, Barnton and Cammo have enjoyed a significant increase in both demand and average property prices, supporting the view that more families are seeking bigger, more spacious homes away from the city centre.
Many careers have become more flexible since the end of lockdown, allowing people to work full-time or part-time from home. This has triggered a rise in buyers seeking less urban areas with more room to accommodate their new lifestyles. As a result, gardens, offices and more bedrooms have enjoyed significantly increased demand as commuting to work has become less of a blocker.
According to the Registers of Scotland Price Index 2022, the average price for detached homes increased by 15.3%, from £284,441 to £327,827, versus flat properties, which saw an increase of 9.6% compared to last year. Moreover, for three-bedroom houses in Edinburgh, Cramond and Cammo, buyers paid on average 14% over the Home Report.
We’re here to help
If you are thinking of buying or selling a property, MOV8 is perfectly placed to help. Our 5-star rated team of property experts can help guide you through each stage of the property process.
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