The Scottish property market continues to show resilience, with notable trends emerging across key regions like Edinburgh, East Lothian, and Aberdeen. Recent national data highlights these trends and offers insights into the opportunities available for all property market participants.
Nationwide's Recent Data: A Growing Market
According to Nationwide's House Price Index, the UK experienced a sixth consecutive month of price growth, with a 0.7% increase in February 2025. This reflects the ongoing demand across the UK, despite challenges like inflation and interest rates. In Scotland, this broader growth has filtered into specific regions, especially in Edinburgh and East Lothian, where we've seen steady appreciation in property values.
Edinburgh: Sustained Demand and Premium Pricing
In Edinburgh, demand remains high, with average house prices sitting at £300,744, up 3.6% from the previous year. This aligns with the broader trend seen in Nationwide's data, as buyers continue to prioritise well-connected urban areas with strong economic fundamentals. Edinburgh, as Scotland's capital, remains a prime location for both domestic and international buyers, particularly in the higher-end market.
East Lothian: Growth with Stability
In East Lothian, average prices rose to £291,000, a 4.3% increase over the past year. The region's coastal appeal and proximity to Edinburgh make it a desirable option for investors looking for growth potential combined with the lifestyle benefits of a quieter setting. This regional growth is supported by the larger national trends, as Nationwide's report points out that demand remains strong across semi-rural and suburban areas.
Aberdeen: A Market with Upside Potential
Meanwhile, Aberdeen stands out for its relative affordability, with average house prices much lower than in the central belt. In particular, one- and two-bedroom homes remain priced under £120,000, making it attractive to investors seeking value. Despite the city's challenges following the downturn in the oil sector, there is renewed optimism as the energy transition gathers pace.
HMRC Data: A Sign of Renewed Activity
HMRC's latest figures also provided further evidence of market activity picking up. Residential transactions across the UK jumped by 14% in January 2025, suggesting a more active year ahead. In Scotland, particularly in premium areas like Edinburgh and East Lothian, this uptick in transactions presents opportunities for sellers to capitalise on growing buyer interest.
Looking Ahead
As we move further into 2025, buyers, sellers, and investors alike will want to keep a close eye on these evolving trends in the Scottish property market.
Despite economic and geopolitical headwinds, I still remain very positive about the Scottish housing market in 2025 - this is primarily due to the ongoing mismatch between supply and demand, the improving affordability for buyers and the continued supply of relative cheap money.
