Average house price in Edinburgh hits over £300k as house buyers pay £40,000 more for homes

The average house price for a home sold through an Edinburgh estate agent surpassed £300,000 for the first time last year.

Estate agency and solicitors Lindsays said that between January and the end of November, the average sale price of a home sold through its Edinburgh office was £316,000, compared to £276,000 during the same period in 2020 - a rise of 14.5%.

House-buyers in Edinburgh were found to have paid an average £40,000 more for their homes in the past year, with the trend expected to continue in Edinburgh and the Lothians throughout 2022.

While there was growth across the country, Edinburgh average property price grew more than double the rate of properties elsewhere in the country.

A home in Greenbank, Edinburgh, which sold for 22% over its asking price. There were 16 offers for it at the closing date.

In Dundee, Lindsays’ city-based staff recorded an average price of £180,000. That was up from £170,000 - just under 6% - on 2020, compared to 15% in Edinburgh and the Lothians.

More emphasis was placed on homes with gardens and this demand is thought to have been a major factor in continued competition which has been reflected in prices.

Maurice Allan, Managing Director of Residential Property at Lindsays, said: “It’s not been unusual this year to see properties go up to 30% above their asking price.

“Houses are in particular demand. The shift we saw of people wanting to move out of the city centre has not slowed - and it’s that competition for the properties available which has been a key factor in fuelling the price rises we’re seeing.

“While we do not expect prices to increase at the same rate we have seen during 2022, that sustained demand means they are likely to continue rising, particularly as lenders continue to make money available.”

He added: “The buyers are there already. We know people are ready to move straight after the break.

“January tends to be a busy time for the market. The challenge is that it often takes time for the supply of homes to meet the demand that’s there.”

The latest figures from the Office for National Statistics (ONS) showed the cost of buying a home in Scotland rose by an average of £18,000 - 11.3% - in the year to October.

The data revealed across the country, the average first-time buyer is paying £145,000 for their starter home - a near 10% increase on the year.

Councillor Kate Campbell, Housing, Homelessness and Fair Work convener, said: “Edinburgh is a growing city and one of the most highly pressured housing markets in the country. In Edinburgh, we have only 14% social housing.

"Across Scotland the average is 23%. That means that almost ten percent of households, which in another local authority would be in social housing, are in the private rented sector. And our private rented sector is the most expensive in Scotland.

“We have carried out a Housing Need and Demand Assessment which shows that there is demand for more housing across all difference types, but the greatest need is for affordable housing.

"That’s why we have a plan to deliver 20,000 more affordable homes. We will continue to make the case for increased investment in this programme to the Scottish Government.

“Through Choices for City Plan, we are proposing a change to planning policy that increases the affordable allocation from 25% to 35% on any new development.”