Edinburgh Housing Market: Rebuilding After Lockdown | Autumn/Winter 2020 Briefing
Edinburgh Housing Sales Market Review | Autumn/Winter 2020
"Scotland’s Capital has traditionally been seen as a safe haven for investment in times of economic uncertainty due to its diversified economy, as a home of learning, politics, finance, and science. Under Covid-19 we have seen a strong spike in demand for high quality prime homes in the city, from both local buyers, and buyers from across the UK and overseas who have been attracted by the investment potential and lifestyle the city has to offer.”
James Whitson, Director, Edinburgh Sales
- The average Edinburgh house price in September 2020 was £286k, up +4.1% on the same month last year.
- Transactions remain -41% down in the year to September compared to the year to September in 2019.
- The market is seeing a split in demand with family homes and homes with outside space being sought-after while smaller flatted homes are less in demand.
- There has been an eagerness to transact post lockdown meaning that, across the market when a price reduction has been used to secure sales it has averaged around -5%.
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A Jekyll & Hyde Market
Over the past decade, the Edinburgh housing market has seen house price growth of around 2.1% per annum on average despite the lasting legacy of the 2008/09 Global Financial Crisis. Over the past 3 years growth has been over 3% per annum on average. This robust market performance, in the face of economic challenges, has long been an attractive feature of the Edinburgh market and, as Covid-19 restrictions have been lifted, demand within the city has seen a strong rebound. This appetite has been reflected in rising stock levels, which over Q3 have been running at 50% to 75% above 2019 levels for the same period. It has also been reflected in robust values across the market.
Average house prices in the first couple of months of the year were around +2-3% above 2019 values before the market weakened in March. With the active Spring market displaced into Summer, values in the Capital have not seen any meaningful downward pressure. In fact, the average price in the city has risen to over £286,000 in September. However, price growth has not been uniform, with demand for family homes or homes with outside space topping the wish list, while properties such as top floor flats have attracted less interest. Figures from Rightmove have shown that, across the market, where a property is not selling the average price reduction is only in the order of -5% to achieve sales.
While market conditions have been positive post-lockdown, it is worth noting that the market is still well down on previous years, with transactions for the year to September still down -41% on last year. In terms of the overall market value in Edinburgh, there has been -40% less value of total property sold in Edinburgh in the year to September, compared to 2019.
If you are looking to sell your property in Edinburgh, please don't hesitate to contact our Edinburgh Office.
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