Average house prices for Scottish first-time buyers (FTBs) rose £5,060 in the 12 months to June 2025, according to analysis by DJ Alexander Ltd.
The estate and lettings agency said the latest house price index showed average FTB prices increased from £153,128 to £158,188, a rise of 3.3%. This was broadly in line with the 3.2% increase seen across the wider housing market.
Regional variations were significant. Perth and Kinross recorded the largest increase at £15,271, followed by Midlothian (£14,126), Renfrewshire (£12,610), Edinburgh (£9,440) and East Dunbartonshire (£8,635).
Six areas posted annual falls, with South Ayrshire down £5,616, East Renfrewshire £4,750, Moray £4,450, Aberdeen £2,346, Aberdeenshire £1,752 and Fife £27. Edinburgh was the most expensive location for FTBs at £242,682, while Inverclyde was the cheapest at £96,148.
David Alexander, chief executive officer at DJ Alexander Scotland, said: “These figures show that the prices for first-time buyers are rising in line with those for all buyers.
“The average increase across Scotland for a FTB was 3.3% while across the whole market the average increase was 3.2%. Obviously within these numbers there are large variations.
“A difference of £146,534 between the most and least expensive areas in Scotland is quite a substantial figure. However, nine areas recorded a percentage increase below the 2.4% average annual inflation rate for the 12-month period, with a further six areas within 1% point of inflation.
“What this tells us is that across large areas of Scotland the cost of buying a home for first-time buyers has actually either fallen in real terms or increased by only a marginal rate.
“The importance of maintaining a steady flow of FTBs cannot be underestimated as they are the bedrock supporting the market further up the ladder. Without FTBs the whole sector would become sluggish, and the market could falter.
“One major lender has recognised the importance of FTBs and is offering higher loans specifically targeting people unable to rely on the bank of mum and dad.
“The Newcastle Building Society has announced that it is offering up to 98% loans with a maximum value of £350,000 to first-time buyers with deposits as low as £5,000 which should encourage greater activity in the housing market.
“The lender does stipulate that buyers must fully fund their own deposit. This is an interesting and creative development which seeks to inject some vitality into the first-time buyer sector.
“Obviously, there are caveats about ensuring appropriate affordability criteria are maintained, but this is a sensible move at a time when the market may be slowing.”
