Scottish Property Market Update: January–June 2025 & Outlook for the Rest of the Year
By Craig Rossiter, Marketing Director – HouseSpotters Estate Agents
A Resilient Start to 2025
The Scottish property market has shown remarkable resilience in the first half of 2025, defying broader global economic uncertainties. Key regions such as Edinburgh, Glasgow, and Aberdeen have maintained steady growth, with property values either holding firm or experiencing modest increases.
Key Highlights (Jan–Jun 2025):
- House Prices: National house prices have remained stable, with some local authorities seeing slight increases due to sustained demand and limited supply.
- Sales Activity: Transaction volumes have been consistent, particularly in urban centres, supported by improved buyer confidence and competitive mortgage products.
- Rental Market: Private rental prices have seen upward pressure, driven by demand from younger professionals and limited rental stock.
- Interest Rates: The Bank of England has gradually reduced the base rate to 4.25%, leading to lower mortgage costs. Floating-rate mortgage interest has dropped to 5.01%, while fixed-rate deals average around 4.43%.
What’s Driving the Market?
Scotland’s property market has benefited from:
- Prudent lending practices and low exposure to global trade tensions.
- Stable employment and consumer sentiment, which have supported housing demand.
- Government support for affordable housing and new builds, helping to ease supply constraints.
Expectations for July–December 2025
Looking ahead, the outlook remains cautiously optimistic:
Forecast Trends:
- Interest Rates: Further modest rate cuts are possible if inflation remains under control. This could stimulate more first-time buyer activity and refinancing.
- House Prices: Continued stability is expected, with potential for slight growth in high-demand areas.
- Rental Market: Demand is likely to remain strong, especially in university towns and cities.
- Housing Supply: New build activity is expected to increase, but supply shortages will persist.
What This Means for Buyers and Sellers
- Buyers: Now is a favourable time to secure competitive mortgage rates before any future rate hikes.
- Sellers: With stable prices and active demand, the second half of 2025 presents a strong window for listing properties.
Final Thoughts
Scotland’s property market continues to demonstrate strength and adaptability. At HouseSpotters, we’re committed to guiding our clients through every twist and turn of the market. Whether you're buying, selling, or investing, our expert team is here to help you make informed decisions.