East central house prices edge towards quarter million average after 3.4 per cent rise

Estate agents ESPC said properties in West Lothian saw a significant increase in average selling prices, rising by 19.3 per cent to £233,325. This is less pronounced than the increase last month, when average selling prices in this area increased by 34.5 per cent compared to the same period last year. The average selling price was driven up due to a greater proportion of higher value homes sold recently.

The average selling price in Edinburgh rose by 4.5 per cent to £268,151. Within the capital, two-bedroom flats in Leith, the Shore and Granton saw the biggest increase in average selling prices, rising by 18.5 per cent to £202,173. Two-bedroom flats in Newington, Grange and Blackford also saw an increase of 18.1 per cent, rising to £306,566.

Data also showed that the median time to sell across east central Scotland was one day slower than last year, with half of all properties going under offer within 18 days. In Edinburgh, the median time to sell was 16 days, which is one day slower than last year.

Two-bedroom flats in Portobello and Joppa were the quickest to sell during this period, with a median selling time of 12 days, which is two days faster than last year. Three-bedroom houses in Dunfermline and two-bedroom flats in Leith were the property types that sold the most during this period.

However, August saw another increase in the number of properties brought to market compared to last year – in August 2018, there was a 5 per cent increase annually, while in ESPC’s July and June House Price reports, this figure was 3.4 per cent and 3.2 per cent respectively. This trend is an encouraging sign to buyers.

Claire Flynn of ESPC, said: “A further increase in the number of properties coming to market in east central Scotland is encouraging. This trend is positive news for buyers, as a shortage of properties has been limiting the local property market in recent years.

“Furthermore, average selling prices are still increasing steadily in comparison to last year, and we are continuing to see very short selling times across Edinburgh, the Lothians and Fife. Reports of house price drops and falling buyer demand in the wider UK market indicate that east central Scotland continues to buck UK housing market trends”

Reflecting on Nationwide’s most recent House Price Index which reported price drops in the UK property market, Jenna Spence, oeprations director at Neilsons Solicitors and Estate Agents, said: “There is no such thing as the ‘UK property market’ – the UK is a patchwork of local markets each with its own dynamics and, unfortunately, much of the press commentary on the housing market focuses on what is happening in London and the south east of England. What matters most is what is happening in your local area if you are considering selling. In Edinburgh, sales prices have increased by 4.5% on average due to huge buyer demand.

“We are definitely not seeing falling buyer demand by any means. It is very much the opposite in Edinburgh and the surrounding areas as evidenced by the speed at which properties are selling and the record selling prices achieved in many cases, if properties are accurately priced, professionally marketed and well-presented for the sale. Closing dates have become the norm in most cases and supply is simply not keeping up with buyer demand.”

Robert Carroll, managing director of MOV8 Real Estate, added: “It’s important to note that Nationwide’s conclusions about house prices are based on prices in the UK as a whole and that they are restricted to properties with a mortgage provided by Nationwide, which comprises approximately 14% of mortgage lending in the UK. Monthly figures like this are always volatile, as evidenced by the 0.7% monthly increase reported by Nationwide the previous month. House price statistics from mortgage lenders make for good headlines but are less reliable for assessing longer term trends.

“In Edinburgh and the Lothians in particular, we noticed a slowing of activity in August compared with previous months. A combination of unusually good weather, school holidays and then the local schools going back undoubtedly had an effect, as they do every year (with the exception of the good weather!). We are seeing activity levels returning to healthy and normal levels in early September with buyer demand far outstripping supply of properties coming to the market and expect to see a very strong last few months of the year.”