Edinburgh House Prices See Positive Growth

Prime prices across Edinburgh nudged up by 0.6% in the first three months of this year, and by 1.2% in the six months to March 2024, confirms Abode2.

According to Knight Frank’s latest index – prompting the estate agency to suggest “buyer sentiment is improving.” Edinburgh’s housing market “is facing similar challenges to the rest of the UK,” says the team, explaining that, despite widespread anticipation of interest rate cuts this year, “the effects of stubborn inflation on the UK mortgage market are limiting sales as households stave off moving house and losing the security of a low fixed-rate mortgage.”

Top-end properties – priced above £1mn – have seen marginally stronger increases over the last six months, although every price bracket is showing positive growth.

Buying activity under £1mn “has softened as domestic buyers hold off their purchasing decisions until borrowing costs start to reduce.

Analysis of how different property types are faring shows that houses are back on the agenda in Edinburgh. Flats proved more popular amongst buyers that houses through most of 2023, but that trend “is starting to wane,” says Knight Frank.

Houses prices in the city increased by an average of 0.9% through Q1, while flats registered just 0.1% growth.

This follows a notable increase in house Vs flat prices through the pandemic years, driven by demand for larger homes and outside space. Houses have seen a 24% increase in value on average since Q1 2020; flats by comparison have notched up 13% growth.