Scotland beating England in housing market stakes

While there have been concerns that house prices in Scotland may have peaked and could be about to fall the latest data shows that the most expensive part of the sector remains defiantly buoyant.

In the 12 months from July 2024 to June 2025 the average price of detached homes across Scotland as a whole increased from £335,133 to £349,062, which is £13,929 higher over the year and equivalent to an increase of just over £267 per week. In England and Wales, the increase in average price for a detached home was £12,833 over the same period.

The largest increase by price for detached homes was in Midlothian, which rose by £860 a week over the last year, increasing £44,739 (9.8 per cent) from £457,313 to £502,052.

Edinburgh closely followed this, with average detached home prices rising by £42,429, equivalent to £815 per week; Glasgow increased by £40,018; and East Lothian was up £30,009.

What these figures tell us is that demand for detached homes remains strong across Scotland, but particularly around Edinburgh. When you examine the percentage gains it is Midlothian, Edinburgh, West Lothian and East Lothian all recording substantial increases over the year. This indicates very high demand for people who want to live and work in the capital.

Edinburgh’s economic performance and population growth is substantially higher than the rest of Scotland and it is clear this is a major draw for those people who want and need to work in the capital. Many of these people will be working in well-paid jobs in finance, professional services and other areas linked to strong economic growth.

The Central Belt as a whole remains extremely buoyant, with annual percentage growth of 9.8 per cent in Midlothian; 9.1 per cent in Glasgow; 7.4 per cent in West Lothian; and 6.9 per cent in Edinburgh shows demand remains high. Dundee was a notable outlier from this Central Belt dominance, with a 6.7 per cent rise over the last year.

But it is clear people want to live and work in or near the vibrancy and dynamism of cities like Edinburgh and Glasgow and their surrounding areas, and, despite taxing people more highly than the rest of the UK, buyers don’t seem to be put off by having to pay more for the privilege. Somebody paying the average price of £651,856 for a detached home in Edinburgh would pay £38,535 in land and buildings transaction tax (LBTT). Legal fees, selling and moving costs would be on top of this. While mortgage rates have been falling recently these figures highlight a strong commitment to buying at the top end of the market at a time when buyers might have been considering holding back due to economic uncertainty.

While the overall figures are positive you need to be wary of assuming that such growth will continue indefinitely. People will be willing to continue to pay high prices and live in the Central Belt as long as the economy is strong, jobs are plentiful and well paid, and the city lifestyle remains attractive. If that changes, the property market will thrive. Nevertheless, these figures show an extraordinary picture of dynamism in our Scottish housing market compared to the rest of the UK.