How Scotland’s housing market continues to defy gravity

Average house prices were up 2.9 per cent last year – higher than the rise in England and Wales, says ​David J Alexander.

The Scottish housing market continues to defy gravity. During 2025 average house prices in Scotland rose by £5,334 which is an increase of 2.9 per cent – higher than the rise in England and Wales which only rose 1.8 per cent last year. This means that between January and December 2025 average house prices in Scotland increased from £185,315 to £190,649.

Within Scotland there were major differences, with Argyll and Bute recording the highest increase of £17,447; South Lanarkshire rose by £16,294; Perth and Kinross up £14,516; Clackmannanshire £13,825 higher; and East Renfrewshire increased by £13,403.

This means that average prices in Argyll and Bute rose by £335 every week of 2025 compared to £102 per week for Scotland as a whole. Aberdeen was the only area which recorded a fall in average prices, which was down £6,299.

The most expensive place to buy a home in Scotland is East Renfrewshire, with an average price of £297,395; followed by Edinburgh at £293,243; Midlothian on £286,803; East Lothian at £280,390; and East Dunbartonshire on £262,223. Inverclyde remains the cheapest place to buy at £113,267.

This shows the growing disparity in average prices across Scotland, with a £77,382 difference between Inverclyde and the average for Scotland as a whole and an enormous £184,128 compared to East Renfrewshire. There are a number of factors involved in this difference but clearly there are many parts of Scotland which are unaffordable for some people to move into. This has always been the case, but the gap does seem to be growing.

These latest figures show much greater growth in the more rural, non-Central Belt, parts of Scotland which is a reversal of recent trends. Argyll and Bute has seen average prices increase by more than 10 per cent, which contrasts with the area’s performance over the last few years. This perhaps indicates a shift away from the cities as more people are working from home, and where you live can now be anywhere as long as there is good internet access.

Aberdeen is the only part of Scotland to record a fall in prices – down by 4.5 per cent in the last year. This is undoubtedly due to continued uncertainty over the future of the oil and gas sector impacting heavily upon the property market. As long as employment prospects remain volatile in Aberdeen then house prices cannot retain any stability.

As with all statistics there will be some who rejoice at rising house prices while others will be dismayed – in particular first-time buyers, who may see these numbers and wonder whether they will ever be able to buy a home. Certainly, in the Central Belt in and around Edinburgh and Glasgow prices have been soaring over many years and affordability has become a major issue. This could be resolved both through lower interest rates coupled with greater supply, but this will require time and support to be achieved.

Overall, however, it is clear that Scotland’s housing market remained in good shape over the last year. There are undoubtedly challenges ahead – with the ongoing uncertainty over the war in Iran topping the list – but this is an optimistic position of steadily rising prices, and continued demand and long may it continue.