TSPC House Price Report: October to December 2023

18 January 2024

The latest TSPC House Price Report for the period of October to December 2023 offers valuable insights into the property market across Dundee, Angus, and North Fife. In this report, we delve into the key trends and statistics that paint a picture of the current property landscape in these regions.

Property market data: Key points

• During October-December 2023, the average selling price of homes in Tayside was £182,571, a 1.2% annual increase.
• The median time for a seller to accept an offer was 27 days, eight days slower year-on-year.
• Sales were down year-on-year, while new property listings were up 12.3%.
• The average percentage of the Home Report valuation achieved was 101%.
• 69% of homes sold achieved their Home Report valuation or higher.
• 8.8% of sales went to a closing date.

What was the average selling price of property in Tayside and how does this compare to regional trends?

The average property selling price across Dundee, Angus, and North Fife experienced a steady annual increase of 1.2%, reaching £182,571 during October-December 2023. Notably, certain areas demonstrated robust growth, with North East Fife leading with a substantial 12.5% increase, followed by Broughty Ferry and Barnhill at 10.2%, and Kirriemuir at 5.3%.

There were areas however that witnessed a decline including Monifieth with an 8% drop, and Arbroath and surrounding areas seeing prices fall 9% annually.

Looking at December alone, Tayside exhibited a remarkable 6.5% increase in house prices annually, highlighting its attractiveness for property investment compared to the overall Scottish (2.6%) and UK (1.7%) growth rates.

How long did properties take to go under offer?

The median time for a seller to accept an offer on a property in Tayside was 27 days, eight days slower year-on-year. This reflects that buyers are now able to take longer to consider their options than in recent years, especially during the post-Covid property boom.

What were sales and insertions like?

Sales experienced a year-on-year decline during October-December, but the market saw a surge in new property listings which were up by 12.3%.

Dundee, including Invergowrie, and Broughty Ferry and Barnhill emerged as hotspots for new listings, providing buyers with more choice. Broughty Ferry recorded a 35% increase in new properties, while Dundee saw a 25% rise.

How much of the Home Report valuation did properties sell for?

In line with the trends seen throughout the second half of 2023, buyers paid closer to the Home Report valuation in order to secure properties during October-December. The average percentage of Home Report valuation achieved was 101%, 3.1 percentage points lower than the same time in 2022.

This is great news for buyers, allowing them to make clear pricing decisions with consultation from their solicitor estate agent, and avoiding the need to pay increased upfront costs. A mortgage offer will likely only cover the value stipulated in a property’s Home Report, with buyers required to pay the additional difference directly. Having an offer accepted that’s closer to the Home Report valuation could allow buyers to pay more into their mortgage deposit upfront, potentially giving them the option to secure a better mortgage deal and thus improving affordability.

Overall, 69% of properties sold with a TSPC solicitor estate agent during October-December 2023 achieved their Home Report valuation or higher.

How did Q4 compare with the rest of 2023?

Comparing quarter four to the rest of the year, May 2023 stood out as a dynamic month in Tayside with a median time of just 14 days for a seller to accept an offer. May 2023 also saw the highest number of new listings with 234 homes entering the market.

Looking at which month recorded the highest number of properties sold, it was August 2023, with 182 homes successfully sold through TSPC solicitor estate agents.

What does it all mean for the property market?

Angela Wallace, Centre and Operations Manager of TSPC, commented: "The final quarter of 2023 highlighted a change in the property market across Tayside which indicates we could be entering a new phase in the market. A shift towards longer selling times suggests a more considered approach by local buyers. The increased choices available, reflected in the rise of new and exclusive property listings on TSPC, signifies a healthier and more balanced property landscape.

“Tayside's remarkable Q4 performance, outperforming the Scottish and UK averages with a 6.5% house price increase, further underscores the region's attractiveness.

“As the market continues to adjust, the current trends offer both challenges and opportunities for buyers and sellers alike.

“If you’re thinking of buying or selling a property in Dundee, Angus, or North Fife, no one is better placed to guide you to property success than a TSPC solicitor estate agent.”

Jane Wood, Chief Executive of sector body Homes for Scotland, said: “The new year has started with major lenders reducing rates and Moneyfacts reporting average two and five year fixes at their lowest levels in nearly seven months.

“Together with Scotland’s better affordability, this should prove a confidence boost for buyers, particularly in the context of house price growth, as Halifax says, likely being driven by lack of supply.”