Scotland’s prime market has shown resilience so far in 2025, with more agreed sales and steady prices, led by demand for family homes in popular suburbs. Looking ahead, Scotland’s comparative value on offer will underpin the prime market, with well-presented and competitively priced properties continuing to attract premium offers.
Faisal Choudhry, Director, Savills Residential Research
Scotland’s prime market has shown encouraging resilience so far this year, despite economic headwinds. With historic price growth pushing more properties into higher price bands, the number of net agreed sales above £500,000 increased year-on-year by 21% during Q2 2025, compared to 6% below this price band and 7% in prime regions outside London, according to data provider TwentyCi.
The market from £500,000 to £750,000, which is more exposed to lending, led the annual uplift due to more stability in mortgage rates. However, tighter supply in some areas restricted the level of sales from £750,000 to £1.5 million, with more subdued activity in country markets above £2 million.
Demand continues to outweigh supply across the prime Scottish market, with growth in agreed sales slightly outperforming new instructions so far this year. Nevertheless, caution around the economy and taxation has created a classic buyers’ market, with more stock available to choose from. With prime properties sitting for longer on the market, the number of available £500,000+ properties, whilst level compared to the end of May 2025, was 15% higher than June 2024.
So, whilst overall momentum across Scotland’s prime market is healthy, correct pricing is essential. There has been a 44% annual increase in the number of £500,000+ properties that have reduced their asking price.
Prime London and prime regional housing markets are currently facing a period of price correction, due to tax concerns, with falls of -0.8% and -1.9% respectively in the three months to June 2025, according to the Savills prime index.
In contrast, Scotland remains resilient with 0.3% prime price growth in the three months to June 2025. That leaves them 0.7% higher than a year ago and 16% more than in March 2020 before the beginning of the pandemic. On the other hand, prime London and regional prices are 2.3% and 7.3% respectively higher than in March 2020.
Despite the growth in prime Scottish prices, there is a -56% gap compared to prime London prices. Consequently, the number of Savills buyers that are London-based continues to grow. Many are ‘super-commuters’ – individuals maintaining careers in the south while relocating to Scotland in search of better value. While this group was already gaining traction pre-pandemic, the rise of hybrid working has supercharged this trend.
Prime agreed sales above £500,000 in Edinburgh increased by 24% during Q2 2025 compared to Q2 2024, led by the city’s New Town, the inner suburbs of Morningside and Stockbridge and family house markets of Barnton, Cramond and Balerno. However, the capital is witnessing depleting supply, especially for houses priced between £800,000 and £1.4 million. Meanwhile, prime prices here increased by 0.8% in the three months to June 2025. However, they are unchanged compared to a year ago, with accurate pricing from the outset key to achieving premiums.
Areas surrounding Edinburgh witnessed slightly lower levels of sales growth compared to the city during Q2 2025. However, coastal hotspots, including North Berwick and Gullane, outperformed. Prime prices increased by 0.4% in the three months to June 2025, with a wide gap between seller and buyer expectations.
Agreed sales growth in Glasgow’s urban markets during Q2 2025 was led by the West End, Pollokshields and the south side. Sales growth in the surrounding areas was supported by Alloway in Ayrshire, Lochgilphead in Argyll and the Killearn and Aberfoyle area in Stirlingshire. Whilst sales activity picked up, prices have plateaued due to increased stock levels, making it more important than ever to set prices accurately from the beginning.
Aberdeen’s residential market saw an uplift in agreed sales during Q2 2025, mainly up to £600,000. This was led by the West End, Cults and Bieldside, which also happen to be catchment areas for the city’s top-performing state schools. However, the market in Aberdeenshire has been relatively subdued so far this year. Meanwhile, prices have remained flat due to continued stability in the level of available stock.
Prime prices in Angus and southern Kincardineshire were level during Q1 2025, with competitive bids for well-presented and appropriately priced properties. The number of agreed sales above £350,000 saw an uplift, led by Broughty Ferry and the western areas of Dundee City and Brechin in Angus, with a marginal rise in the Laurencekirk and Montrose areas.
Prime Perthshire prices marginally increased by 0.3% in the three months to June 2025, following a period of adjustment in 2023/24. Here, modern, energy-efficient and turnkey properties ranging from £400,000 to £750,000 are in greater demand, with the Dunkeld, Strathtay, Aberfeldy and Strathearn areas outperforming.
Concern around economic stability, VAT on private school fees and the increase in the LBTT Additional Dwelling Supplement has driven much of the cautious sentiment in the Scottish prime market. As a result, the UK Autumn Budget and next year’s Scottish Parliament election are going to be important landmarks in determining the path ahead. Future cuts to interest rates and upward stimulation from loosened lending criteria may serve as a counterbalance, but should also be viewed in the context of ongoing geopolitical uncertainty.
The prime Scotland market, though not entirely insulated from national headwinds, maintains strong fundamentals, with well-presented and competitively priced properties continuing to attract premium offers. This, combined with the comparative value on offer, appears to be creating some welcome consistency across the middle-tier markets, with a deepening pool of motivated London buyers adding momentum. However, in an environment where caution prevails, vendors should remain realistic on their pricing expectations and be alert to buyers who are truly motivated.
< View our latest Q2 2025 updates here.
For more information, please contact your nearest Scotland office or arrange a market appraisal with one of our local experts.