Scottish housing market continues to outperform neighbours in England

Annual house price growth in the UK has slowed to a 20-month low according to the latest Nationwide house price index. It showed that annual UK house price growth slowed from 1.6 per cent to 0.6 per cent between November and December of 2025. This is probably a temporary blip caused by employment and economic uncertainty and may not continue but what is interesting is that the situation may be somewhat different in Scotland.

While there does seem to be an easing of demand in home-buying, long-term analysis shows that the Scottish market has outperformed its neighbours south of the Border for some time. Our latest examination of the last five years of average house prices in Scotland reveals a 21.5 per cent rise between November 2020 and October 2025, compared to an increase of 18.0 per cent in England and Wales over the same period.

The actual increase in average house prices in Scotland is £33,976 over the 60 months, rising from £157,849 to £191,825. Across Scotland there were substantial variations in price rises, with East Dunbartonshire recording the highest increase of £62,450; Midlothian rising by £58,746; Moray up £50,424; West Lothian £50,213 higher; and East Renfrewshire increasing by £49,796.

This means that average prices in East Dunbartonshire rose by £240 every week for 260 weeks compared to £130 per week for Scotland as a whole. There was only one area which recorded a fall in average prices, with Aberdeen down by £12,741 over the five-year period.

The most expensive place to buy a home in Scotland is currently Edinburgh, with an average price of £292,089; followed by East Renfrewshire at £290,110; Midlothian on £290,055; East Lothian at £281,531; and East Dunbartonshire on £272,658. Interestingly, the same five areas had the highest average prices in 2020.

It is important to realise that although almost all of Scotland saw an increase in average prices Aberdeen homeowners have seen the value of their properties fall. This is undoubtedly due to long-term continued uncertainty over the future of the oil and gas sector which has resulted in an unstable and difficult housing market which is unlikely to be resolved unless some indication is given over the economic future of the city.

While many will be happy to hear their home value is rising others, particularly first-time buyers, will be in despair over 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 may be partially resolved both through lower interest rates – which are likely to come this year – coupled with greater supply which will require time and support to be achieved.

Rising house values are, in general, a good thing. They are one indication of a robust economy that is prospering and growing with homeowners benefitting from their investment in a home and consequently seeing some rewards for their effort.

While it is clear that Scotland’s housing market remains in good shape over the medium term there are undoubtedly challenges ahead but, nevertheless, this is an optimistic position of steadily rising prices, and continued demand.