In line with previous months, the current financial climate and the uncertainty surrounding the mortgages market, the figures may also be affected by a traditionally lower period of activity across the summer months.

The Scottish Borders experienced the biggest decrease in average selling prices, with an 11.4% decline meaning the new average there was £224,464. Meanwhile, East Fife saw an 11% rise in average selling prices, with a new average of £317,081.

It is important to note that these figures may be due to individual properties selling for extraordinary figures during July-September in 2022 and 2023, which could affect the data, rather than substantial rises or falls in the regions’ overall values.

Edinburgh’s average selling price was £298,495: an annual decrease of 5.3%. If we examine the individual areas of the Capital, the city centre experienced a 12.8% decline, meaning the average selling price for a property was £310,069. While this figure may appear concerning at first glance, ESPC data reveals that it is all due to the types of properties sold last year compared to this year.

In July-September 2022, 16 properties sold for over £1 million, while during the same period this year, three properties had a selling price of over £1m, affecting the average selling prices reported.

Average selling prices overall may be affected by the increased prevalence of homes listed for a fixed price (levels of which have risen 29% annually), which are likely to be listed much closer to their Home Report valuation, rather than opening them up for overbids.

In line with trends seen in previous months, properties have seen a decline in the amount of the Home Report valuation buyers were willing to pay. During July-September 2023, homes attained 103.9% of their Home Report valuation on average, down 4.4 percentage points on the figures seen in July-September 2022.

This is a trend ESPC has seen over the last few months which continues to indicate the impact of affordability and the mortgages market on property prices, and how seriously buyers are taking this when considering their final bids. The increased amount of choice available on the market in certain price brackets will impact this, with 43.5% more stock on espc.com compared to last year, which lessens the fierce competition for limited properties seen in recent years.

The biggest declines were seen in East and West Lothian, where buyers paid 6.1 percentage points less over the valuation figure than the same time last year. However, while this meant that buyers in West Lothian paid the least over valuation overall, at 101.1% on average, East Lothian buyers were still bidding the most over the Home Report valuation compared to all the ESPC regions, offering 104.9% on average.

In Edinburgh, properties in the sought-after South of the city achieved the highest figures, with buyers paying an average of 106.8% for their ideal home. 25.8% of homes for sale across Edinburgh, the Lothians, Fife and the Borders had a closing date set, down from 35.5% last year – again, this demonstrates how much the market has cooled, but in all has returned most closely to figures seen in 2019.

Properties for sale in Edinburgh, the Lothians, Fife and the Borders had a median selling time of 20 days during July-September 2023, six days slower than the same time last year. All areas were slower to sell compared to last year, but West Lothian was the slowest, with a median selling time of 38 days – 21 days longer than the same time last year.

Following on from the extraordinary levels of activity recorded in both 2021 and 2022, it is not a surprise to see that both sales volumes and insertions have declined during July-September 2023, as the market settles and there is less movement from buyers and sellers. Overall, sales volumes declined 15.9% year-on-year, while new property listings were down 3.1%.

Paul Hilton, CEO of ESPC, said: “July-September 2023 has clearly been a slower time for the Scottish property market, particularly as we are making comparisons to the extraordinary activity we have seen over the two or three previous summers.

“While some of these figures may appear concerning, it is important to remember that the property prices and demand are not falling as such, rather returning to a more normal base level.

“The impact of the current financial climate has clearly been felt, with many buyers and sellers cautious about affordability, mortgages and finances overall. With the recent stay in interest rates, perhaps we may see this reflected in the data from next month onwards, as buyers may feel more positive about their prospects.

“We are already seeing a reduction in mortgage interest rates of new products coming to the market, which may reassure some and help in terms of affordability – but the real impact on the market will be clear in the coming months.”

Mr Hilton concluded: “While demand has slowed overall, and we understand this may be a concern for property owners and sellers, it’s also key to look at the positives. The market is continuing to become more accessible to first-time buyers, with an increase in fixed price homes and decreases in the amount over Home Report valuation buyers are expected to bid and the number of closing dates set, meaning the market is more accessible for those with lower budgets.

“While the exceptional figures we have seen in recent years were great news for sellers, the market was extremely tricky for buyers and there are many positives to be found in that evening out.”