Market conditions across Edinburgh, the Lothians, Fife and the Borders are becoming increasingly varied, with differences emerging in buyer demand and the types of homes being sold, according to Scottish property marketing company ESPC.

Its latest House Price Report, covering May to July, found average selling prices across the regions increased 2.7% year-on-year to £296,298.

However, price movements differed considerably between local markets. East Fife recorded a 5.4% annual increase, while average prices rose 8.2% in East Lothian and 9.5% in West Lothian.

ESPC said the increases in the Lothians indicated greater interest in higher-priced properties and premium locations.

Overall transaction activity weakened, with sales volumes down 7% year-on-year and new property insertions falling 6.1%.

Despite this, 85% of properties coming to market were listed using an “offers over” strategy, an increase of 8.7 percentage points compared with the same period last year.

ESPC also reported an annual increase in property search views on its website, while stock levels remained broadly similar to a year earlier. Sign-ups for My ESPC accounts increased 12%.

Properties continued to take a median of 21 days to go under offer, unchanged year-on-year. Buyers paid an average of 102.2% of Home Report valuation, down 0.3 percentage points.

The proportion of properties going to a closing date declined from 22.1% to 19.8%.

Dunfermline showed a different pattern, with its average selling price falling 6.8% annually. ESPC attributed this largely to a reduction in sales of four-bedroom homes alongside a sharp increase in transactions involving two- and three-bedroom properties.

Despite the lower average price, buyer demand in the city remained strong. Homes achieved an average of 103.5% of Home Report valuation and went under offer in a median of 13 days.

Paul Hilton, chief executive of ESPC, said: “Last month’s report presented a strong drive in demand for premium properties, especially in East Lothian, and this month we can see a continuation of that pattern.

“Buyers with bigger budgets are seeking premium homes in prestigious locations and the surrounding economic environment will be less impactful. For buyers in the middle ground, it’s no surprise to see a real drive towards locations such as Dunfermline, which offer the opportunity to purchase a long-term home at a much more affordable price.”

Hilton said the variation between local markets meant accurate pricing and local expertise remained important for sellers.

He added: “Competition is less intense than we saw during the same time last year, but well-priced, well-presented homes are continuing to attract strong levels of interest and achieving healthy results.”