August 13, 2025
This month we’re looking at what’s been happening with property prices in Scotland in the first half of this year. With the economic landscape mixed at best, has this affected the housing market, and prices specifically?
In ‘Property Predictions for 2025’ our contributors concentrated more on the likely movement of interest rate rather than prices, however some brave souls did offer opinions and we’ll have a look at how those are looking at the half-way point.
One broad point of agreement between the contributors was that 2024 was a marked improvement upon the previous year; will 2025 show continuing improvement? Let’s find out how we’re doing halfway through the year.
Scottish property market 2025
Below is the run down of Q1 property sales from the Scottish Government, along with a graph showing house price rises since 2010 in Scotland. Q2 figures are not yet available from the Scottish Government.
As you’d expect, the major cities are all doing well, although Glasgow is outperforming Edinburgh by a couple of percentage points compared to this time last year.
Aberdeen is looking a bit weak at present, as is Dundee, however the outstanding performance is coming from Orkney and Shetland. The Borders region is also doing well, with increases in both activity and price rises.
It’s notable that areas near the two major central conurbations are showing steady growth – Central Scotland and Renfrewshire both posting healthy returns so far in ‘25.
This is most likely due to the higher prices in Glasgow and Edinburgh encouraging buyers to look for more attractive options within a reasonable commuting distance.
| LA | Prices – Q1 2025 | Q1 2025 on Q1 2024 | Previous 4 quarters to Q1 2025 |
| Aberdeen City | £138,842 | -1.4% | -0.3% |
| Aberdeenshire | £198,414 | -0.9% | -0.1% |
| Angus | £164,027 | 3.4% | 3.2% |
| Argyll & Bute | £169,795 | -1.4% | -0.3% |
| Clackmannanshire | £161,038 | 2.5% | 4.5% |
| Dumfries & Galloway | £160,468 | 4.2% | 1.8% |
| Dundee City | £134,897 | 0.3% | 0.7% |
| East Ayrshire | £125,457 | 3.2% | 3.6% |
| East Dunbartonshire | £257,561 | 5.1% | 1.9% |
| East Lothian | £284,404 | 2.8% | -0.3% |
| East Renfrewshire | £290,513 | 8.4% | 3.0% |
| Edinburgh, City of | £288,319 | 6.4% | 2.9% |
| Falkirk | £165,106 | 4.3% | 3.6% |
| Fife | £168,437 | 7.8% | 2.3% |
| Glasgow City | £183,247 | 6.9% | 5.0% |
| Highland | £209,246 | 2.2% | 2.2% |
| Inverclyde | £108,529 | 4.0% | 4.6% |
| Midlothian | £281,476 | 4.2% | 2.4% |
| Moray | £197,713 | 7.1% | 2.8% |
| Na h-Eileanan Siar | £142,188 | -8.3% | -8.2% |
| North Ayrshire | £127,154 | 4.9% | 3.9% |
| North Lanarkshire | £147,680 | 7.4% | 5.8% |
| Orkney Islands | £220,645 | 14.4% | 7.8% |
| Perth & Kinross | £215,502 | 1.3% | 0.8% |
| Renfrewshire | £151,797 | 5.9% | 4.8% |
| Scottish Borders | £178,115 | 3.3% | 2.9% |
| Shetland Islands | £207,783 | 7.7% | 12.5% |
| South Ayrshire | £163,166 | 1.4% | 2.8% |
| South Lanarkshire | £172,994 | 6.7% | 3.7% |
| Stirling | £226,051 | 5.7% | 5.5% |
| West Dunbartonshire | £119,970 | 1.2% | 4.8% |
| West Lothian | £218,161 | 4.1% | 3.6% |
| Scotland | £186,403 | 4.9% | 3.2% |
Source: ONS, UK HPI
However, the government figures don’t tell the whole story, useful though they are. The ESPC House Price Report, June 2025 makes for more interesting reading.
Please remember that the Edinburgh Solicitors Property Centre (ESPC), as its name suggests, concentrates on Edinburgh and surrounding areas; their findings aren’t inclusive of the whole of Scotland.
Buyers are paying, on average, 102.4% of the Home Report (HR) valuation. Naturally there are variations across the country with West Fife and Kinross enjoying the highest returns.
Ironically, East Fife delivered the best bargains with properties selling for around 99.0% of HR. Fife truly has it all it seems!
The whole report is worth a read and suggests that the market is healthy and affordable, with some very quick sales times and an average year-on-year increase of around 4%.
That increase falls almost exactly in line with Kessar Salimi’s prediction of house prices rising in-line with inflation in his predictions for 2025, so a feather in his cap!
This positive view of the market is echoed by others in the property market, with both Slater Hogg and Mov8 writing upbeat reports in June this year. Slater Hogg also commented on the relative health of the Scottish rental market.
The market is also healthy in terms of transaction numbers, with a slight 0.5% year-on-year increase. Within that figure though some areas are very active; Dunfermline saw more than elsewhere, despite being 31.6% down on 2024.
Leith, Trinity, Corstorphine and South Queensferry all saw significant increases in property transactions compared to last year.
Glasgow property continues to perform well with prices rising 8.3% compared to May 2024. Between them, Glasgow and Edinburgh accounted for 22% of all property transactions. Rents in Glasgow also performed well, year on year.
Advice from the property pros
The Scottish property market appears to be in good health whilst avoiding any signs of overheating.
This is good news for anyone interested in acquiring property, either residential or as an investment. While many properties are selling over HR value, the percentage over valuation is not excessive, which benefits buyers.
Transaction numbers are also healthy, meaning that there is a broad choice on the market for buyers and the time on the market is as good as, or better, than 2024.
Interest rates appear to be reasonably stable, with the Bank of England aiming to reduce the base interest rate further this year.
Whether the blip in inflation we’ve just seen will affect this remains to be seen. However it’s likely that at worst this would delay a rate reduction rather than preventing it outright.
Property prices in Scotland are in pretty good shape for both residential buyers and investors and there are no obvious reasons why this should change significantly during the second half of 2025
In summary…
In short, the property market in the first half of 2025 is looking pretty solid. Not spectacular, not unbelievable, but healthy and reasonably assured.
This is good news for all buyers, with properties typically selling a little above HR valuation as opposed to the inflated prices we saw just a few years ago. It also indicates that capital growth is healthy, benefitting long-term investors.
With property prices realistic and a healthy volume of transactions occurring, this is a good time to contemplate investing in property.
We would encourage you to get in touch with us to discuss your ideas and goals – together we can help you find the right investments to make your buy-to-let dreams come true.
Written by Ross MacDonald, Director of Sales & Cofounder of Portolio
Get in touch on 07388 361 564 or email to [email protected]
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