The Edinburgh and Lothians property market has experienced an exceptionally positive start to 2024.
ESPC have revealed significant growth of 26.9% in property listings compared to January 2023. Neilsons Solicitors and Estate Agents have outpaced this growth with our listings soaring by a whopping 64.2%, which is welcome news for local buyers.
The average selling price in Edinburgh and the Lothians region now stands at £271,985.
The most popular pricing structure remains ‘Offers Over’ with over 90% of properties marketed this way, a clear indication of a strong local market indicating healthy local demand for properties. Neilsons have also seen a 12.9% rise in property sales, compared to January 2023.
Property sales in January 2024 experienced a remarkable boost following the festive season. This trend suggests an increased number of buyers compared to the winter of 2022/23, signalling increased market confidence – a positive development.
At Neilsons in January:
High Demand in Local Areas
In family friendly Corstorphine, where Neilsons buy and sell the bulk of properties, sales volumes have rocketed 38.4% annually over the past three months.
Dunfermline continues to be hugely popular with buyers, as it secured the highest volume of property sales in the ESPC, despite levels being down on 2023.
Leith has also seen sales volumes soar 17.8% year on year.
Interest Rates Held
Interest rates have recently been held at 5.25% by the Bank of England recently, for the fourth time. This sends a strong message of confidence, which is great news for those eyeing their next move in the property market.
Neilsons have already seen an extremely promising start to the year as buyers have returned to the market in higher volumes than January 2023.
Whilst the cost of borrowing remains higher than the borrowers have become used to, they should be reassured that we have likely seen the peak where interest rates are concerned, and that any future movement will likely be downwards. This should help draw even more buyers back to the market.
Selling Time of Properties
In January 2024, the median selling time for properties across Edinburgh and the Lothians was 24 days.
Properties in the east of the city were quickest to sell, taking 19 days to go under offer on average. One bedroom flats in Leith Walk took 15 days to sell, 7 days faster than January 2023. One bedroom flats in Easter Road went under offer in just 9 days on average. This indicates a high volume of first time buyers.
The trend of increasing property listings, particularly smaller flats in Edinburgh hotspots, could be due to landlords exiting the rental market due to ongoing legislation around rental rates and the regulation of Air BnB. This has led to an influx of first-time buyer-friendly homes coming onto the market.
Market Implications
Jenna Spence, Operations Director at Neilsons, shares her insights on the current market trends:
“Traditionally, winter is often considered a quieter time for the property market. However, in Edinburgh and the Lothians, that’s not the case. The market appears incredibly positive and robust overall, and all signs point to an increasing number of buyers, especially first-time buyers, stimulating the market. We are also experiencing continued demand for family homes.
The Edinburgh and Lothian property market’s robust start to 2024 indicates a promising year ahead. The rise in property listings and sales, particularly at Neilsons who are now number one for sales and listings locally, showcases the growing confidence of buyers in the market. The increased availability of first-time buyer-friendly properties is a trend to watch out for, potentially reshaping the local property market in the coming months, enabling sellers and buyers to move up the property ladder.”