Edinburgh home prices slip as volume soars

The average selling price of homes across Edinburgh, Lothians, Fife and the Borders fell 0.9% to £271,624 during the three months of December 2023 – February 2024, according to the latest ESPC House Price Report.

In Edinburgh, residential property prices fell 1.4%, meaning the average price in the capital city was £286,675.

In the North West of Edinburgh, property prices were 17.3% down, to £261,657. 

However, the volume of properties sold in the ESPC area rose 13.4% annually during the three months, with the volume of new properties coming to the market up 21.8%.

“If we examine the specific market areas, we can see much variation in the demand during what is typically a quieter period for the property market,” said the ESPC report.

“Homes in West Fife & Kinross were under high demand, as property prices here rose 5% year-on-year to an average of £224,165.

“By contrast, neighbouring East Fife saw a reversal in its fortunes, with the average selling price down 10.6% to £251,938 – however, this is likely due to a spike in the number of property sales for lower-priced homes skewing the overall figures, with a sharp rise in the volume of homes selling in this area within LBTT band one (i.e., under £145,000). 

“In line with the West Fife & Kinross average, the city of Dunfermline saw average selling prices rise 4.3% to £212,600. 

“In Edinburgh, property prices were much the same as the previous year, with a small decrease of 1.4%, meaning the average price in the Capital was £286,675.

“The popular East of the city once again saw an increase in property prices, rising 8.1% annually, meaning the average in this area was £263,981.

“In the sought-after Edinburgh South West, average selling prices were 10.4% higher year-on-year, at £310,629 on average, while in the North West of Edinburgh, property prices were 17.3% down, to £261,657. 

“The best-performing property type in Edinburgh was three-bedroom houses in the popular family suburbs of Currie, Balerno and Juniper Green. This property type experienced a 13.6% annual increase in selling price, up to £361,247. 

“The most affordable property type overall was two-bedroom flats in Dunfermline, with an average selling price of £136,909. In Edinburgh, the most affordable property type was once again, one-bedroom flats in Gorgie, with a price tag of £149,981 on average. 

“85% of sellers listed their homes for offers over, up from 77.5% the previous year, showing that there is currently high confidence in the market, with sellers feeling reassured that their properties can still attract a premium, even with increasing competition.

On the volume of properties on the market in the ESPC area, the report said: “If we look at the top ten areas where properties sold in the highest volumes, trendy Leith was top of the list, followed by family-friendly Corstorphine – where sales volumes were up a staggering 105.3% – with Dunfermline in third place, where interestingly, sales volumes were down 15.4%.

“However, Dunfermline offered the highest number of new property insertions, so there was a huge amount of choice for buyers in this area, which can affect sales volumes as buyers take more time to choose their future home. 

“Inside the top ten were three Midlothian areas, hinting at increasing demand for commuter-friendly locations close to Edinburgh.

“Bonnyrigg saw a 64% rise in properties selling, while in Dalkeith, sales volumes increased substantially, by 89.5%. Perennially popular Penicuik was also in the top ten, with a modest sales volume increase of 3.1%. 

“Unsurprisingly, two-bedroom flats in Leith were yet again the property type which sold in the highest volumes, increasing 26.5% annually.

“One-bedroom flats in Leith were the second most-popular property type with buyers, with sales volumes up 21.7%.  

“Three-bedroom houses in Dunfermline were the third most-popular property type, with sales volumes up 30% year-on-year.”