Zoopla: Scottish Property Market Set for a Strong 2025
The latest data from Zoopla indicates that 2025 is shaping up to be a bumper year for the property market across the UK, with Scotland seeing promising growth in both property transactions and values.
Increased affordability boosting buyer confidence
With mortgage rates at their lowest level in two years and incomes on the rise, buyer affordability has significantly improved, making homeownership more achievable. This dynamic is particularly impactful for the Edinburgh and Lothians markets, where strong job sectors and a thriving local economy make the area an attractive option for both first-time buyers and those looking to upscale. Compared to last year, mortgage repayments for a typical first-time buyer home are now an estimated 17% cheaper than renting, an advantage driving higher first-time buyer interest across Scotland.
Steady 2024 growth in home prices
UK house prices have experienced modest growth nationally, increasing by just 1% over the past 12 months, in contrast to the previous year’s slight decline. In Scotland, however, house prices have risen at a faster pace at 2.4%.
First-Time Buyers and homeowners 'leading the charge'
Zoopla’s data shows that first-time buyers (FTBs) will be the largest buyer group in 2025. They will account for around 36% of all property transactions. In Edinburgh and the Lothians, owning is more appealing than renting. The current market offers more purchasing power to FTBs than in recent years. The report also highlights more existing homeowners re-entering the market. Many who postponed moving due to higher borrowing costs are now buying. They are taking advantage of reduced mortgage rates and favorable conditions.
For sellers, this increase in buyer activity is great news. The UK market has the largest sales pipeline in four years. Over 306,000 homes are currently being sold across the UK. This is a 26% increase compared to last year. In Edinburgh and the Lothians, this momentum indicates high demand for available properties. There is potential for quicker sales and competitive offers.
Strong pipeline for early 2025
The momentum in new sales is expected to carry through December, bolstered by a higher-than-average inventory of homes available on the market. This trend suggests that even as we move into the new year, Edinburgh and the Lothians will continue to experience a high level of market activity, with many of the transactions initiated in late 2024 anticipated to complete in early 2025. For those looking to enter the market, either as buyers or sellers, this period represents an excellent window to capitalise on ongoing market strengths.
Navigating a thriving property market
We possess a deep understanding of the Edinburgh and Lothians property markets and the Simpson & Marwick team are here to provide clients with the insight and guidance on when to buy, sell or invest. Whether you’re a first-time buyer ready to take advantage of improved affordability or a luxury homeowner looking to capitalise on favourable conditions, our team is here to help.
With our extensive local expertise and commitment to personalised service, Simpson & Marwick can help you navigate the market in 2025.
