Scotland’s housing market is truly quite remarkable

The Scottish housing market is really quite remarkable. The latest figures show that the average percentage price growth across Scotland is running at almost twice the rate of England and Wales. In the 12 months from September 2024 to August 2025 the average house price in Scotland rose by £9,299 to reach £193,786, which is a 5.0 per cent increase on the same period the previous year. In England and Wales average prices rose by £8,036 – a 2.8 per cent increase.

When you consider that average house prices south of the Border are actually £100,000 higher than Scotland this makes both the percentage and the monetary gains in Scottish prices all the more remarkable.

Quite why, given that interest rates are the same and employment prospects are broadly comparable, this should be occurring is a bit of a mystery. Undoubtedly, Scottish homebuyers’ enthusiasm for property has led to continued demand resulting in prices rising.

But a further reason is likely to be that the last year had the lowest number of completions for newbuilds since 2012/13 which means more people seeking fewer homes resulting in higher prices.

Within the Scotland-wide figures there were distinct levels of growth both geographically and by price. The biggest increases occurred in East Dunbartonshire, which recorded a rise in average prices of £15,615; Perth and Kinross, which rose by £15,522; Renfrewshire was up £15,372; East Ayrshire higher by £13,992; and Edinburgh increasing by £13,205.

Just as some areas are seeing considerable increases others are experiencing price falls. Aberdeen was down £8,115 and Aberdeenshire fell by £4,410. Uncertainty in the North-East over the future direction for the oil and gas sector is undoubtedly a major factor and continues to subdue house prices in the area.

The most expensive place to buy a home in Scotland is Edinburgh, with an average price of £295,653, while the cheapest area is Inverclyde at £116,981. This is a significant, and potentially concerning difference, but Edinburgh has always been something of a unique market in Scotland attracting local, national, and international buyers which boosts prices in the capital.

However, with the largest price increases occurring across geographically diverse areas in the country it is encouraging to see that growth is becoming more widespread than simply the country’s largest cities.

It is essential, if the housing market is to grow meaningfully and effectively in the coming decades, that housing thrives in a broad range of areas. With more people working from home and a lessening of the need to be based in or close to major conurbations it would be sensible to encourage more housing in as many locations across the country.

However, the Scottish housing market remains in remarkably good health with strong average price growth and demand remaining high. This is a moment to celebrate the strength of the sector. While the rate of growth may be slowing slightly this remains a robust performance. Uncertainty over the Budget and the future economic direction may cause property prices to slow further in the coming months but this is a positive picture of buyers retaining their love for homeowning and the Scottish housing market.