The latest House Price Report from ESPC pointed to a well-balanced property market across Edinburgh, the Lothians, Fife and the Scottish Borders, with buyer confidence improving towards the end of 2025.
Based on sales data from October to December 2025, the average selling price rose by 4.1% year-on-year, underlining the resilience of the local market.
While price growth was more moderate than in the same period a year earlier, it closely reflected longer-term trends, signalling stability rather than volatility.
Sales volumes fell by 8.3% year-on-year, while new listings declined by 10.2%.
However, ESPC noted that both figures are broadly in line with 2023 levels, suggesting a return to more typical market conditions rather than a weakening in demand.
Flats were the most popular property type overall, with strong demand for one- and two-bedroom flats in Leith, driven by lifestyle appeal and city living.
Among family buyers, three-bedroom houses were most sought after, with Dunfermline emerging as the most popular location thanks to its affordability, space and transport links.
Market activity during the period was influenced by wider economic factors, particularly the UK Budget and expectations around interest rates.
In the weeks leading up to the Budget, uncertainty prompted some buyers and sellers to pause their plans.
Anticipation of an interest rate cut in mid-December also contributed to this cautious approach.
With that cut now delivered, ESPC reports that confidence has strengthened, providing positive momentum heading into 2026.
Homes took slightly longer to sell, going under offer in an average of 25 days, four days slower than the previous year.
Buyers paid an average of 101.7% of Home Report valuation, indicating that while competition remains, purchasers are taking more time to make considered decisions.
Affordability varied significantly by location.
Hawick recorded the lowest average selling prices during the period, while Edinburgh’s West End achieved the highest, reflecting continued demand for prime city neighbourhoods.
