> The Edinburgh Home Demonstrator (EHD) explores an innovative approach to design, procurement, and delivery of affordable net zero carbon homes.
> Planning permission has been granted for EHD’s second pilot project in Greendykes, delivery of which will be led by Urban Union and supported by Donaldson Timber Systems and Robertson Timber Engineering.
> The development of the Greendykes project will complete the last stage of the 15-year Greendykes North Masterplan aimed at regenerating the wider Craigmillar area.
> Both Donaldson Timber Systems and Roberson Timber Engineering will be using their proprietary offsite manufactured timber systems to deliver the build.
Proposals to transform currently vacant land into an affordable net zero carbon housing development in Edinburgh have now been approved by city planners.
Located between Greendykes Avenue and Greendykes Road in east Edinburgh, the development named ‘Greendykes K & L’, will comprise 28 two-storey terraced houses and 112 flats in four-storey tenement style blocks.
As well as being the final stage in the Greendykes North Masterplan to regenerate the Craigmillar area, the Greendykes K & L development is also the second of three confirmed pilot projects being delivered by The Edinburgh Home Demonstrator (EHD) – a programme providing an innovative approach to building affordable net zero carbon homes at scale.
The Scottish Government-backed programme has engaged a community of research and development experts to develop a catalogue of house types with the goal of demonstrating how we can create and set a new standard for affordable net zero carbon homes at scale across the six local authorities within the Edinburgh and South East Scotland City Deal Region.
The homes that will be delivered as part of the EHD will be built using modern methods of construction (MMC) including offsite manufacturing techniques in accordance with the EHD’s design and performance standard that outlines a route to achieving net zero.
Specifically, the Greendykes pilot will be looking to optimise existing, and develop additional, house and flat types for the EHD catalogue and to test design, performance standard and mass customisation of the EHD house and flat types. Using the EHD types allowed an additional seven homes to be built on site showing the efficiency of the EHD design.
Anderson Bell + Christie Architects were appointed by Urban Union, housing developer and principal contractors, to create the plans for the Greendykes development on behalf of the City of Edinburgh Council. Donaldson Timber Systems and Robertson Timber Engineering will deliver the offsite manufactured elements.
Each firm will use their proprietary offsite manufactured, closed-panel timber systems at Greendykes. Both systems will allow the build to be less wasteful and more efficient, while reducing embodied carbon emissions and increasing the quality and energy efficiency of the housing once complete.
As the second project delivered by EHD, the Greendykes development will benefit from the data and insights gathered during the first pilot project which is under way in Granton.
By carrying out extensive pre- and post-occupancy evaluations into build speed, energy demand and whole-life embodied carbon emissions, the development of the Greendykes site is projected to similarly provide insights that will feed into and inform the EHD business model and the ongoing regional approach to delivering net zero carbon affordable housing at scale.
John Smith, Technical Director, Donaldson Timber Systems said:“The approach of one site, one contractor, and two different timber systems gives us the ability to measure both.
“We can test, monitor and compare each system all the way through the process from build to occupancy, which will teach us a great deal about how best to deliver future net zero carbon housing at scale.”
Nicola Jackson, Net Zero Projects Lead, Robertson Group said:“This project is significant for bringing together two members of industry to develop and optimise the future model of net zero carbon house types.
“For Robertson, it is specifically important as it’s an opportunity to increase the pre-manufactured value (PMV) of our timber systems, meaning we can increase the quality of a build project and ensure that once complete, the homes will meet energy efficiency goals.”
Over 100 new council homes have been approved as part of Edinburgh’s major regeneration of Fountainbridge.
Formerly the site of the Fountain Brewery, the huge number of new homes for social rent will feature in a 49,000 square metre redevelopment overlooking the Union Canal.
The area will be transformed as part of a development called Leamington Square – a joint venture between the City of Edinburgh Council as landowner and a partnership between Cruden Homes (East) Ltd and Buccleuch Property. They will deliver around 464 homes alongside landscaping and infrastructure improvements, over 2,700 square metres of retail space supporting the creation of a 20-minute neighbourhood approach and new local jobs.
The Council will own 115 homes for social rent and 71 homes for mid market rent as part of the plans and support the delivery of additional, affordable new homes. It will also spearhead the creation of a community growing space and new integrated cycle ways. Over 1,000 cycle parking spaces are planned for the development in total.
The Union Canal is a Local Nature Conservation Site and landscaping is planned to create a biodiverse area in harmony with the character of the waterway. Generous use of trees of varying species is also planned while the development will be designed to minimise greenhouse gas emissions and incorporate low carbon technologies, in line with Edinburgh’s ambitious net zero aims. Historic elements of the adjacent North British Rubber Factory will also be preserved and incorporated into the designs.
It is envisaged that work will begin in 2024 and be fully built-out by 2027.
Councillor Jane Meagher, Housing, Homelessness and Fair Work Convener, said: “For years, Edinburgh has desperately needed more new social housing. This council is determined to tackle that shortfall and I’m delighted that we’ve secured space for over 100 new homes for social rent at Leamington Square.
“Just a stone’s throw away from the Union Canal, with great cycle links and amenities on the doorstep, the regeneration of the old brewery site is sure to prove a really popular place to live.
“The demand we are seeing for affordable and social homes is only going to increase as our city grows. And, while the future is challenging, together with developers and others we are doing everything within our powers to make it fairer on residents and on our environment with high quality, affordable, sustainable homes.”
Carlo D’Emidio, Project Director of Cruden Homes, said: “This is a significant milestone for this flagship new development, which will see the transformation of this former brownfield site in Fountainbridge into a vibrant new community.
“Subject to our development agreement with City of Edinburgh Council, Cruden and Buccleuch will deliver highly sustainable, Net Zero homes which will sit amongst a wealth of new amenities and community spaces in the Capital’s newest neighbourhood.”
Ewan Anderson, Managing Director, 7N Architects, said:“7N Architects are delighted that planners have approved our latest plans for this new, mixed use, neighbourhood at Fountainbridge in Edinburgh.
“The development will provide 464 mixed-tenure homes, 30,000 sq.ft of mixed-use space and people friendly public realm which will reinvigorate this important canalside site. We now look forward to taking the project onwards with Cruden Homes, Buccleuch Property and the City of Edinburgh Council.”
Commenting on the housing crisis sweeping the nation, FOYSOL CHOUDHURY MSP said: “Home is supposed to be a place of safety and comfort, yet for many households across Scotland their home has become a source of discomfort and illness, overridden with damp, mould and urgent repairs.
“Many across our nation sadly don’t even have homes, stuck on seemingly endless waiting lists for both permanent and temporary accommodation.
“There is no doubt that Scotland is deep in a housing crisis and that urgent action is needed to change this sector before it’s too late.
“As of September 2022, 9, 130 children were reported to be living in temporary accommodation, which is an 100% increase from a decade ago.
“This is unacceptable, all children deserve a safe, healthy and stable home.
“Last week, during the Scottish Labour Business Debate on Housing and Homelessness Prevention, I urged the Scottish Government to act quickly and effectively to reverse the record numbers of children trapped in temporary accommodation.
“I also noted both in my speech then, and the day before during topical questions at the Scottish Parliament, that a new NUS report shows that a fifth of international students in Scotland had experienced homelessness during their studies.
“This problem was also made evident to me in a Student Housing Roundtable I hosted earlier this year, where I heard stories of racist landlords, sofa surfing and damp infested homes.
“Clearly, these are problems which are striking constituents across many sectors of society.
“This demonstrates that there is an overbearing crisis in the housing sector, with particular weaknesses of rising homelessness, striking levels of poor conditions and a worrying prominence of unscrupulous landlords.
“These three areas of great concern must be addressed urgently and I will continue to urge for solutions in these areas.
“I’ve already held my Member’s business debate on Damp Housing in Scotland and my motion for this noted my call for a whole house retrofitting programme and a grant scheme to tackle damp housing.
“I’ve also lodged a student housing motion at the Scottish Parliament, urging for legislation which would give equal rights to all tenants in terms of protections offered to them.
“Scottish Labour are also calling on the Scottish Government to deliver 38,000 social homes by 2026, and to build 25,000 all tenure new homes annually.
“We urgently need a two-pronged approach which both builds more social and affordable housing, in addition to also prioritising equal access to settled housing for all.
“Once we do this, we also need to ensure that legislation holds landlords accountable, prioritises rights for tenants and awards funding for retrofitting and damp management to combat the problems with much existing housing stock in order to generate safer, liveable conditions.
“Recently, we’ve had weeks of talking on all aspects of Scotland’s housing crisis.
“That’s fantastic.
“But, now it’s time to show the value of our words and start the action.”
‘significant number’ will be accessible and affordable for social or mid-market rent
The City of Edinburgh Council has successfully secured a major new site for accessible affordable housing in the South of the city.
A successful £14.8m bid for Liberton Hospital and its grounds, including the former Blood Transfusion Centre, has been accepted by NHS Lothian – paving the way for around 400 hundred homes in the area, a ‘significant number’ of which will be accessible and affordable for social or mid-market rent.
The NHS will continue to occupy the premises until March 2025 to allow the hospital’s remaining services to be gradually relocated. During this time, the council plans to appoint a development partner and consult with the local community to draw up plans for an accessible green neighbourhood – making sure to retain many original features of the historic hospital, gatehouse and gardens facing Lasswade Road.
The council’s vision for the site is to focus on supporting a range of housing needs while delivering homes at scale to help meet the city’s growing demand. It is anticipated that the regeneration will deliver at least 380 energy efficient mixed tenure homes for sale and rent, all of which could be fully accessible, with up to 50% affordable. This would exceed the council’s commitment of at least 35% affordable homes on residential developments.
The area already has a significant level of public amenity due to existing woodland and original hospital gardens, creating a fantastic opportunity for a range of high-quality public spaces as part of a wider green network.
The regeneration of the land will retain as many of the existing trees as possible and incorporate them into green routes throughout the site, allowing for active travel connections to Burdiehouse Burn Valley Park, St Katharine’s Park and Liberton Park.
A Prior Information Notice (PIN) seeking interest from potential development partners has been issued and work will be carried out to prepare for construction, including developing detailed designs and agreeing a net zero carbon energy solution for the site, contributing to the council’s ambitious target to reach net-zero emissions by 2030.
Councillor Jane Meagher, Housing, Homelessness and Fair Work Convener, said:For close to 150 years Edinburgh residents have been cared for under the roof of Liberton Hospital. I’m delighted that we’ll be able to pay that care forward as we convert the site into much needed new homes.
“By demolishing the 1960s built extensions, including the disused Blood Transfusion Service, we’ll be able to design an accessible green neighbourhood of low-carbon housing from scratch. This will help lots of people with specialist needs to live comfortably and with independence. Plus, it will allow us support people who are in desperate housing need as we’re looking for a developer who can commit to our vision of at least half of these new homes being affordable.
“We’re committed to putting care-based housing at the centre of this redevelopment and I’d like to thank our partners at the NHS for working with us to secure the land. It has been many years in the making.
The Sky is the Limit for Double Height Apartments at Rowanbank Gardens
A row of double-height apartments at Artisan Real Estate’s acclaimed Rowanbank Gardens homes development in Corstorphine is proving a high-flying success with buyers.
Each of the six roomy two-bedroom apartments have an extra double-height pitched roof, allowing for lots of natural light to flood through both the full height and Velux roof windows creating a distinctive loft-style feel to the interior living space.
Home buyers looking for something different have already reserved four apartments, with the remaining two currently attracting significant interest. Work on the development began in summer 2021, with the first move-ins expected later on this year. And, so far, home sales have been buoyant with more than a third of apartments now sold.
“The double-height apartments are just one of the many reasons why Rowanbank Gardens is having such a broad appeal to a wide range of buyers,” explains Izzy Bastiani, Artisan’s New Homes Sales Advisor.
“A major attraction is that the development embraces a range of different styles and layouts, with all the apartments arranged around a large garden and woodland space, filled with fruit trees and communal planting beds.”
Another major draw is the development’s smart, energy-efficient design – which means delivering green, low-cost energy.
Izzy adds: “Rowanbank Gardens design is geared to achieving low to zero carbon ratings, with the added benefits of significantly lower home-running costs. We aim to make each apartment as energy efficient as possible by using the very latest in technology to encourage low carbon living.
“Research shows that average annual hot water and heating costs for a two-bedroom apartment at Rowanbank Gardens could be as low as £775 per year – or less than £65 per month – providing long-term cost savings for first-time budget-conscious buyers or purchasers looking for more energy efficient living.”
Prices for a one-bedroom apartment at Rowanbank Gardens start from £245,000, with a two-bedroom from £320,000 and a three-bedroom from £422,500 making the development a perfect destination for first-time buyers and downsizers wanting to live in well-connected, bustling community just minutes from the city centre.
To register interest in Rowanbank Gardens and book an appointment at the on-site sales and marketing suite, visit the development website at www.rowanbankgardens.com or call 0131 516 3302.
The launch of Bield Housing and Care’s new five-year corporate strategy signals the beginning of a period of significant change and innovation for one of the country’s leading housing providers.
Tech-driven solutions are a key focus in the new strategy, which has been launched to drive the organisation’s growth and maximise independence among its tenants.
These solutions will be at the heart of Bield’s vision for medium-term growth and will help to tackle external challenges faced by the sector such as climate change, the cost-of-living crisis and an ageing population.
The new strategy aims to position Bield tenants, customers and staff at the centre of the organisation’s decision-making, design and adapt homes to meet customer needs, simplify its services, strengthen its financial performance, support its staff to improve their skills and efficiency, and secure UK-wide recognition for its innovative and leading approaches.
Dr Lynne Douglas, Chief Executive, Bield Housing and Care.
Dr Lynne Douglas, CEO at Bield, said: “Our new five-year corporate strategy will guide us along the way as we focus on achieving our vision and ambitions and ultimately make a positive impact.
“Our strategy will measure whether we are delivering to meet our customers’ desires, rather than just ticking boxes. This new outcome-based approach will expand our influence in the sector, as we look to set and deliver the standard for ageing at home.”
It comes at a pivotal time for the housing specialist which recently opened a new digital hub, showcasing housing technology of the future, at its West Port development in Linlithgow. This was possible thanks to funding from the Technology for our Ageing Population: Panel for Innovation (TAPPI) project which aims to improve the way technology is used in housing and care for older people.
The hub provides a variety of preventative care technologies to support individuals to live independently, in their own homes, for longer, and is available for tenants, staff and other stakeholders to trial.
Bield will implement its strategy in three distinct phases – strengthen, grow and lead – to ensure it is delivered in a planned and coordinated way.
This phased growth will allow Bield to meet its key priorities which are broken down into five main subsets: facing challenges, improving efficiency, harnessing strengths, enhancing impact and leading the way.
Lynne added: “At Bield, we’re always striving to improve customer experience and satisfaction whilst growing our use of modern, in-home technologies to support independent living.
“Our new strategy will enable us to develop a personalised and proactive approach to delivering our services, develop and test new innovative digital solutions and share our experience and expertise for the benefit of wider society.
“It is estimated that by 2030 more than 600,00 people in Scotland will be aged 75 or over so now more than ever is the time to be ambitious.”
Bield is a housing and care charity committed to providing innovative, flexible and high-quality housing solutions and support for older people. Bield Housing and Care has around 180 developments which facilitate independent living across Scotland.
The charity currently operates across 22 local authorities and works with 24 health and social care partnerships in Scotland.
To find out more about Bield and its developments, visit https://www.bield.co.uk/ or follow on Facebook @bieldhousingandcare and Twitter @BieldScotland
Speaking after his Members’ Business Debate on Damp Housing in Scotland at the Scottish Parliament last week (20/04/23), Foysol Choudhury MSP said:“The tragic death of two-year-old Awaab Ishak, who died after exposure to extensive mould in his home in England, was a stark warning of the dangers that mould can cause when not dealt with properly.
“That’s why it was so important for me to bring this Members’ Business Debate to the Scottish Parliament, to highlight that we must act now to stop preventable deaths like Awaab’s from occurring in Scotland.
“Unfortunately, too many Scottish residents today live in dangerous housing.
“The Scottish Government’s recent House Condition Survey supposedly found that 40,000 homes in our nation fall below tolerable standards, with a third of these being due to rising or penetrating damp.
“Given there are on average two people per household, that’s 80,000 Scottish residents living in homes that their own Government considers to be intolerable, with 27,000 of these due to damp.
“One of my constituents lives with their partner and four children in a council house in Edinburgh.
“Two of the children have asthma, which has gotten worse, and another has developed a constant hacking cough as a result of damp and mould.
“My constituent has told me they fear for their children because of their prolonged exposure to mould and has even had to call an ambulance at one point due to their child having severe chest pains.
“The ambulance report actually cited mould as an environmental factor at their property.
“Another of my constituents has been living in a mould infested house for 16 months with their 21-month-old son, leading to a disastrous effect on their mental health.
“Many constituents are left feeling helpless and like nothing is being done to ensure they have permanent, safe accommodation.
“Negligent behaviour of private landlords must be tackled, especially as almost half of private-sector-rented homes in Scotland supposedly failed the Scottish Housing Quality Standards.
“The experience of my constituents, who have had to move out of their privately rented accommodation because of fears the effects of damp and mould would have on their very young child, speaks for itself.
“Letting agents and private landlords must ensure tenants are aware of the ways in which mould and damp occurs and how to prevent it.
“In addition, landlords should not be renting out houses or flats that need structural repairs to avoid mould forming.
“Ultimately, housing providers should be held responsible for ensuring that the accommodation they provide is clean and safe for every resident or tenant that moves in there.
“The Scottish Government need to do more to help them and hold them accountable when crucial repair work is not being done properly.
“How many trips to the hospital, long-term illnesses, or deaths caused by damp housing is it going to take for the Scottish Government to take this seriously?
“I am asking for the Scottish Government to consider setting up a grant scheme to tackle dampness problems in council, housing association and private sector properties. We need to address both the long and short-term problems with damp housing and consider extra investment for a whole house retrofitting programme, across Scotland.
“Too many of our citizens are living in dangerous accommodation and landlords are getting away with doing nothing about it.
“We, as the Scottish Parliament, have to do more. “
Harbour Homes and Cullross Ltd have brought eleven new affordable homes to Telford Drive. The homes, close to a popular walking and cycle route, will be managed by Harbour Lettings who look forward to welcoming new tenants this spring.
The contemporary development consists of one and two-bedroom flats overlooking Edinburgh’s skyline with the castle and Arthur’s Seat in view, and further afield to the Pentland Hills.
The modern homes have ample storage, ground floor private and communal gardens, bicycle storage and a rainwater harvesting system. These new homes, located on an already established residential street, are conveniently placed near public transport links, green spaces and shops at a nearby retail park.
Heather Kiteley, Harbour Chief Executive, said:“These homes offer a modern, affordable living option for the local community, including those working at the nearby Western General Hospital.
“It is fantastic to bring our new mid market rent homes to an established community, and I expect these will be sought after as a highly convenient spot for the local workforce.
“This project has been a real success, working alongside Cullross Ltd to deliver such high-quality homes ahead of schedule.”
Mark Beaton, Director of Cullross Ltd., said: “We are delighted to be handing over the eleven 1-bed and 2-bed flats at Telford Drive, well ahead of schedule.
We have worked closely with Harbour Homes, both through the planning process and latterly the construction phase, providing them with these high-quality new flats.
“Although the nature of the project was at times complex, we are pleased with the outcome resulting in these excellent new homes. We look forward to seeing the new tenants moving in shortly.”
The main contractor was Cullross Ltd who appointed the architect and structural engineer. The employer’s agent was Pottie Wilson, and the Clerk of Works was Harbour Homes.
February House Price Index from Walker Fraser Steele
January’s downturn in prices continues into February
Prices in 2023 experience the largest fall in fourteen years
East Renfrewshire is authority with highest average prices
Sales volumes are low in Jan & Feb – expect higher sales in March
Average Scottish House price now £220,702, down 0.9% on January, up 3% annually
Table 1. Average House Prices in Scotland for the period February 2022 – February 2023
(The prices are end-month smoothed over a 3 month period)
Note: The Walker Fraser Steele Acadata House Price Index (Scotland) provides the “average of all prices paid for houses”, including those made with cash.
Scott Jack, Regional Development Director at Walker Fraser Steele, comments:“Far from experiencing a storm, the Scottish housing market could be said to be navigating choppy waters.
“This is to be expected as January and February are typically slow months for house sales – in part because of the shorter days and extended holidays over the Christmas period. However, the seasonal lull in activity has been amplified by the rise in mortgage costs as a result of the ill-conceived Truss-Kwarteng mini budget.
“Amazingly, notwithstanding that onslaught, the current average house price still remains some £6,300, or 3.0%, above the average price of twelve months earlier. However, through a monthly lens, our index shows that in February 2023 prices continued their descent, falling by a further £2,000 in the month, on top of the £1,750 price decrease in January.
“If we take account of both the change in prices and the number of transactions involved – Edinburgh (17%); Aberdeenshire (9%); South Lanarkshire (9%); North Lanarkshire (7%); East Renfrewshire (6%); and Clackmannanshire (6%) in February accounted for 54% of the £6,300 increase in Scotland’s average house price over the year.
“Of note in Scotland is that many estate agents have noticed an increase in the number of rental properties coming to market. Landlords raised their concerns about the legislation in response to the cost-of-living crisis some time ago. This legislation has followed a sustained period of increased letting agent regulation, higher taxes for landlords and tight rent controls to protect tenants.
“As we emerge from February, we will watch transaction volumes carefully. In each of the last eight years, March transaction totals have always exceeded those of February. We should expect higher sales volumes in next month’s data.”
Commentary: John Tindale, Acadata Senior Housing Analyst
The February housing market
February 2023 continued the downward trend in average prices seen in January, with prices falling by a further £2,000 in the month, on top of the £1,750 price decrease in January. Prices in 2023 to the end of February have therefore dropped by £3,750. Ignoring the price movements associated with the introduction of the LBTT tax in April 2015 and the termination of the LBTT tax-holiday in April 2021, these price reductions represent the largest falls over two months since February/March 2009, some fourteen years ago.
During February 2023, it was the price of flats that again fell the most, down by -1.8% in the month.
So why the price falls? As discussed last month, January and February are typically the weakest months of the year in Scotland’s housing market in terms of transaction levels, which is in part to do with Christmas, when many estate agents remain closed over the holiday period.
When sales levels are low, minor trends – which might otherwise have been obscured by the larger number of sales in the other months of the year – can stand out. For example, estate agents have been reporting that the number of sales of properties which have previously been in the rental market are becoming more noticeable, with the government rent cap and future regulation changes deterring investors in this sector.
Even a small exodus of private investors in buy-to-let properties will have an impact on prices in the winter months. In Edinburgh, for example, the price of an average flat fell from £286k in December 2022 to £275k in February 2023, while in Glasgow average flat prices fell from £180k to £169k over the same period – with these two cities accounting for 38% of Scotland’s flat sales in February.
Despite reporting the largest monthly fall in prices of the last fourteen years, the current average house price still remains some £6,300, or 3.0%, above the average price of twelve months earlier.
Indeed, as can be seen from Figure 1 below, taking a view of price movements in Scotland over the last five years, the dip in prices in January and February 2023 is barely perceptible. The average house price in February 2018 was £178,175 compared to £220,702 in February 2023 – a £42,500, or 24% rise over the period – about which the adage that past performance is no guarantee of future performance is pertinent.
Figure 1. The average house price in Scotland over the five year period February 2018 to February 2023
Local Authority Analysis
Table 2. Average House Prices in Scotland, by local authority area, comparing February 2022, January 2023 and February 202
Table 2 above shows the average house price and percentage change (over the last month and year) by Local Authority Area for February 2022, as well as for January and February 2023, calculated on a seasonal- and mix-adjusted basis. The ranking in Table 2 is based on the local authority area’s average house price for February 2023. Local Authority areas shaded in blue experienced record average house prices in February 2023.
Annual change
The average house price in Scotland in February 2023 has increased by some £6,300 – or 3.0% – over the last twelve months. This annual rate of growth has decreased by -1.6% from January’s 4.6%, which is a slightly smaller fall than the -1.9% reduction seen in January.
However, in February 2023, 23 of the 32 local authority areas in Scotland were still seeing their average prices rise above the levels of twelve months earlier, three fewer than in January. The nine areas where values fell over the year were, in descending order (with newcomers this month marked by an asterisk):- Inverclyde* (-8.7%), Orkney Islands* (-3.0%); Fife (-2.9%), Aberdeen City (-2.1%), Na hEileanan Siar (-2.0%), Glasgow City* (-1.2%), Angus* (-1.2%), Scottish Borders (-0.4%) and Dundee City (-0.2%).
The area with the highest annual increase in average house prices in both January and February 2023 was Clackmannanshire, up by 25.0% and 29.3% respectively over the two months. However, there were only 27 transactions in Clackmannanshire in February 2023, with a small number of transactions frequently being associated with volatile movements in average prices.
On a weight-adjusted basis – which incorporates both the change in prices and the number of transactions involved – there were six local authority areas in February which accounted for 54% of the £6,300 increase in Scotland’s average house price over the year. The six areas in descending order of influence are: – Edinburgh (17%); Aberdeenshire (9%); South Lanarkshire (9%); North Lanarkshire (7%); East Renfrewshire (6%); and Clackmannanshire (6%).
Monthly change
In February 2023, Scotland’s average house price fell in the month by some -£2,000, or -0.9%. This is the largest fall in a single month since March 2009, some fourteen years ago, ignoring the rather artificial falls around the months relating to the introduction of the LBTT in April 2015, as well as the ending of the LBTT tax-holidays in April 2021.
In February 2023, Scotland’s average house price fell in the month by some -£2,000, or -0.9%. This is the largest fall in a single month since March 2009, some fourteen years ago, ignoring the rather artificial falls around the months relating to the introduction of the LBTT in April 2015, as well as the ending of the LBTT tax-holidays in April 2021.
On a weight-adjusted basis, there were four local authority areas in February which accounted for 51% of the -£2,000 decrease in Scotland’s average house price in the month. The four areas in descending order of influence are: – Glasgow (-18%); Edinburgh (-16%); Fife (-9%); and East Lothian (-8%). It is not surprising to find Glasgow and Edinburgh in this listing, given the fall in flat prices, as they are the two authorities with the highest percentage of flats being sold each month, at 67% and 63% of their respective transaction totals.
On a similar theme, Fife has the highest proportion of terraced sales of all the 32 local authorities in Scotland, at 27% – terraced properties also being popular among buy-to-let investors, who may have decided it is time to sell.
The highest increase in average prices in the month was in East Renfrewshire, where – with two detached properties selling for £1 million plus in Newton Mearns, one being a new-build on the Southfield Grange Development – the average price of detached properties in the area rose by £22k in the month.
Overall, in February, the average price in East Renfrewshire increased by 7.7%, causing Edinburgh with its downward movement in prices, to fall into second place in terms of having the highest-valued average house price in Scotland.
Peak Prices
Each month, in Table 2 above, the local authority areas which have reached a new record in their average house prices are highlighted in light blue. In February, there are 5 such authorities, up by one from 4 in January.
Scotland transactions of £750k or higher
Table 3. The number of transactions by month in Scotland greater than or equal to £750k, January 2015 – February 2023
Table 3 shows the number of transactions per month in Scotland which are equal to or greater than £750k. The threshold of £750k has been selected as it is the breakpoint at which the highest rate of LBTT becomes payable.
There were 37 such transactions recorded by RoS relating to February 2023. Currently, this is the fourth-highest February total recorded to date, but there is likely to be an increase to this figure next month, as RoS process additional sales.
According to the RoS data, the highest priced property sold in Scotland in February 2023 was a £1.6 million terraced property in Edinburgh. This contrasts with three properties sold in January at £3 million plus. Although the number of such sales is small, especially in the winter months, it is perhaps an early indication of a slight slowing in sales at the top-end of the market.
Transactions analysis
Figure 2 below shows the monthly transaction count for purchases during the period from January 2015 to January 2023, based on RoS (Registers of Scotland) figures for the Date of Entry.
The chart shows how transactions tend to dip in February from the January totals, which in turn are lower than the totals for the year’s preceding December. In six of the eight years displayed, the February sales total is the lowest of the year. The two occasions when this was not the case was in February 2020 and February 2021.
In February 2020 the Covid pandemic had yet to be identified, with the first lockdown beginning on 23rd March 2020, Phase 1 being introduced on 29th March 2020 and Phase 2 introduced on 19th June 2020. This resulted in an almost total lack of sales in April 2020 – a position clearly visible on the graph.
In 2021 the end of the LBTT tax-holiday was planned, and indeed, did end on 31st March. Consequently, sales of properties were higher than average in the final two months of the scheme – the brown line showing a peak in sales in March 2021. Sales did however slump in April 2021, as the tax-holiday came to an end. April was therefore the month with the lowest level of sales in 2021.
A close study of the eight years displayed in Figure 2 also reveals that each December is followed by a reduction in transactions in the following January, without exception.
Figure 2. The number of sales per month recorded by RoS based on entry date from 2015 – 2023
What we can also learn from Figure 2 is that one of the three months of June, July and August have seen the highest sales of the year in 4 of the 8 years displayed. Finally, in each of the eight years, March transaction totals have always exceeded those of February. One can therefore look forward to higher sales volumes with next month’s data
Heat Map
The heat map below shows the rate of house price growth for the 12 months ending February 2023. As reported above, 23 of the 32 local authority areas in Scotland have seen a rise in their average property values over the last year, the nine exceptions being :- Inverclyde, Orkney Islands, Fife, Aberdeen City, Na h-Eileanan Siar, Glasgow City, Angus, Scottish Borders and Dundee City.
The highest increase on the mainland over the twelve months to February 2023 was in Clackmannanshire at 29.3%, although this was based on a relatively small number of sales. In second place on the mainland was Moray at 14.3%. 4 of the 32 local authority areas had price growth of 10.0% or higher – one fewer than in January 2023.
Comparisons with Scotland
Figure 3. Scotland house prices, compared with England and Wales, North East and North West for the period January 2005-February 2023
Figure 4. A comparison of the annual change in house prices in Scotland, England and Wales, North East and North West for the period January 2020–February 2023
Scotland’s Eight Cities
Figure 5. Average house prices for Scotland’s eight cities from December 2021–February 2023
Figure 6. Average house prices for Scotland’s eight cities February 2023
Councils empowered to prioritise ‘homes for living in‘
Plans to enable councils to raise the amount of council tax paid on empty and second homes will be included in a new consultation to help increase housing availability.
First Minister Humza Yousaf will announce proposals at the Scottish Trades Union Congress today (Monday 17 April) which could give councils powers to charge up to double the full rate of council tax on second homes from April 2024.
The proposed change would bring second homes into line with long-term empty homes from next year. The joint consultation with COSLA will also seek views on further powers to charge more than double rate on both empty and second homes in future years.
Latest figures show that in January 2023 there were 42,865 long-term empty homes in Scotland.
The consultation will also ask for views on whether there should be changes to the definition of when a property offering self-catered accommodation becomes liable for non-domestic rates.
The plans will deliver on commitments in the Scottish Government’s Housing to 2040 strategy and Bute House Agreement with the Scottish Green Party to enable councils to prioritise homes for living in and manage the impact of second or long-term empty homes.
Ahead of the consultation opening, the First Minister said: “We want everyone in Scotland to have an affordable home that meets their needs and this work to improve the availability of sustainable long-term housing opportunities is a core part of that.
“By recognising the important role councils have in considering local needs, these proposals aim to strike a balance between good housing supply and helping communities to thrive and benefit from tourism.
“I encourage anyone who is interested to respond to the consultation as we try to prioritise homes for living in, seeking a fair contribution to local services from everyone and recognising the benefits to local economies from self-catering accommodation and second homes.
“All responses will be carefully considered before legislation is introduced to the Scottish Parliament.”
COSLA Resources Spokesperson Councillor Katie Hagmaan said: “Local government in Scotland is committed to supporting access for everyone in Scotland to an affordable home.
“That is why we are pleased to be launching this joint consultation, as we work to meet the shared aim of creating the right balance to increase the availability of housing and a taxation system that is fair for the tourism industry.
“We also welcome the greater fiscal empowerment for councils to reflect local circumstances this would introduce. Any additional funding created by these changes under consultation will enable councils to invest in local needs and support sustainable communities.
“We are pleased to be jointly working with the Scottish Government on this vital area of work and we look forward to considering the responses.”
