As 2024 comes to an end, we take a closer look at the market’s performance over the last year and give our predictions for 2025.
The property market followed its usual seasonal pattern in 2024, with a bustling spring and autumn and a slightly quieter summer market. Despite the usual slowdown in the run-up to Christmas, the residential market in Edinburgh and the Lothians remains resilient, supported by serious and motivated buyers who continue to search during the winter months.
Following a period of rapid price increases in the years after Covid, 2024 marked a shift toward stability. House prices across the region levelled out, with fewer properties achieving the dramatic percentages above valuation as seen in prior years.
Selling times have gradually lengthened across the region. However, the market’s performance, as well as supply and demand levels, have varied depending on the location and property type. For example, good quality family homes in the most sought-after areas remain scarce, whilst changes to letting legislation have resulted in a noticeable increase in flats entering the market. As new build developers navigate challenges such as surplus inventory, subdued demand, and rising material and labour costs, many are offering attractive buyer incentives, making new-build properties an appealing option for many.
Property chains have become increasingly common over the last year. Many buyers, particularly families, are reluctant to list their current home without securing an onward purchase first. This is often due to the worry of being temporarily homeless or because they are struggling to find a suitable property to buy. While renting between sales was once a popular option, high rental costs and limited availability have made this less feasible. We have therefore seen a huge increase in the number of offers being submitted subject to the sale of an existing property. When these offers are accepted, it can lead to increased timescales, risk and stress for all involved; it only takes one part of the chain to fail for it all to fall through.