Scotland’s housing market shows fading momentum
Following several market highs, May saw the first monthly price reversal this year, as reported by Scotland’s latest HPI data from Walker Fraser Steele, powered by Acadata. Average house prices are down by nearly £1,700 on April, standing at £230,700. This is 1.8% higher than a year ago, down from 2.9% in April (Figure 1).
Looking closer at regional changes, the outlook is a little gentler. The number of local authorities recording higher month-on-month prices has decreased slightly from the norm, and was broadly matched by the number reporting a decline. Prices in Aberdeenshire (-6.7%) and Shetland (-6.1%) were the most significant “fallers”.
That said, nine local authorities, mainly middle- and lower-priced areas, reached fresh market highs in May. Looking at 2025, about half of the authorities have hit new peaks so far.
Scott Jack, regional development director at Walker Fraser Steele, commented on transactions data: “Sales activity has softened slightly, with May’s estimated transactions down 7% year-on-year. However, the broader outlook remains positive.
“Falling mortgage costs, steady wage growth, and a high proportion of cash buyers continue to support the market, which is expected to remain in positive territory year-on-year through the rest of 2025.”
Figure 1. Modest year-on-year price gains continue
For more information, visit: https://www.esurv.co.uk/category/insight/house-price-index-scotland/