Homes in Edinburgh had an average selling price of £302,863 on average, which is 1.3 per cent less than the same time last year.

However, the decline was more pronounced in East Lothian, where average selling prices fell 4.7 per cent annually to a new average of £271,663. The decline is more likely due to a rise in the number of smaller, cheaper properties selling across the region compared to larger, more expensive ones.

For example, ESPC figures show that, year-on-year, there were more sales of one-bedroom flats in Musselburgh and two-bedroom flats in Haddington during this time, with a decline in the sales volumes of pricier properties such as three-bedroom houses in the same areas.

By contrast, the localised nature of the Scottish property market was clearly evidenced in West Fife & Kinross and West Lothian, with both areas recording increases on their average property selling prices compared to May-July 2023: up nine per cent and 11.6 per cent respectively.

Properties in the sought-after Edinburgh South achieved some of the highest prices, with homes in this part of the city selling for an average of £360,702 – again, very similar to prices recorded in May-July 2023 (just a 0.2 per cent difference year-on-year). Homes in the popular North West of Edinburgh saw some of the most drastic price changes, with a 15 per cent annual increase in selling prices, taking the average cost of a property purchase in this area of the Capital to £340,946.

Dunfermline offered more affordable options than many other areas, with an average selling price of £209,181 – a 3.5 per cent increase on the same time last year. One- and two-bedroom flats in the city were among the most budget-friendly properties available, with average selling prices of £92,755 and £132,524 respectively, making them an ideal choice for first-time buyers or those in the earlier stages of their property journey.

Continuing a pattern seen in the last few months, the market enjoyed a burst of healthy activity during May-July, with significant rises in the volume of property sales.
Sales volumes rose 22.2 per cent year-on-year across Edinburgh, the Lothians, Fife and the Borders, demonstrating strong levels of activity from keen buyers at all stages of the property ladder.

Once again, one- and two-bedroom flats in Leith were the properties sold in the highest volumes; during May-July, they had average selling prices of £188,843 and £244,269 respectively. The two-bedroom flats experienced a significant rise in sales volumes compared to May-July 2023, with levels up 70.3 per cent annually, while sales of one-bed flats rose 15.4 per cent by comparison.

Paul Hilton, CEO of ESPC, said: “The three months of May-July provide welcome news for both active buyers and sellers, and those thinking of buying or selling imminently. We’ve seen a very healthy market over this period, with supply and demand working well to satisfy the market’s needs and some reassuringly consistent figures when it comes to average selling prices and median selling times, especially that the current average selling price is so close to that of the same time last year, offering real stability. Clearly, both buyers and sellers are feeling much more confident in the market compared to last summer, and the recent announcement of the Bank of England’s decision to lower the interest rate should only serve to boost this in the months to come.

“When it comes to the most in-demand areas, it’s the usual suspects, with affordable and trendy areas like Leith, Dunfermline and Musselburgh coming up time and time again, especially for one- and two-bedroom flats, suggesting large volumes of either first-time or younger buyers choosing to set up home in these locations. The substantial leaps in sales volumes in these areas certainly hint at an influx of new residents excited to call these locations home.”