Scotland’s prime market continues to defy national headwinds, with resilient buyer demand and steady pricing. While uncertainty around taxation may cause short-term hesitation, underlying demand for prime Scottish property is strong, with sellers who lean into appropriate pricing, presentation and buyer engagement finding success.
Faisal Choudhry, Director, Savills Residential Research
Speculation around potential property tax reforms affected buyer and seller confidence across prime UK markets during the last quarter. Supply was impacted, with prime regional markets outside London seeing a -2% year-on-year (YoY) drop in new instructions of £500,000+ properties during Q3 2025, according to data provider TwentyCi. However, the market showed resilience, with demand outpacing supply. This resulted in a 7% YoY rise in net agreed sales.
Scotland’s prime market above £500,000 outperformed the rest of the UK and the wider Scottish market with a 10% annual rise in net agreed sales during Q3 2025, despite a -4% drop in new instructions. However, the prime Scottish market is not completely immune from national headwinds. The number of prime net agreed sales during September 2025 was -2% less than September 2024, ending a streak of positive YoY growth in the monthly figure stretching back to December 2023.
Prime Scotland agreed sales activity during Q3 2025 was led by the market up to £750,000 and between £1 million to £2 million. However, the increased cost of moving home against a backdrop of taxation challenges has affected supply and demand from £750,000 to £1 million. Meanwhile, the £2 million+ market has seen limited activity due to a smaller pool of active and committed buyers.
Encouragingly, buyer and seller expectations on price are aligning, with just a 2% annual rise during Q3 2025 in the number of £500,000+ available properties that reduced their asking price. The increase from Q2 2024 to Q2 2025 was 44%. Furthermore, with agreed sales exceeding new instructions, available stock above £500,000 was level. That said, with larger properties taking longer to sell, there is still a high number of available properties and we therefore expect the continuation of a price-sensitive market.
Price sensitivity has been most noticeable in the markets of prime central London, which continues to contend with the lingering impact of earlier policy shifts, which has been compounded by fresh speculation over taxation. Here, prime sale prices in the three months to September 2025 fell by -1.8%, according to the Savills prime index. However, prime prices were steady in the family-oriented markets of South West London.
Across regional markets outside London, the rate at which prime prices fell eased back since Q2 2025. Overall prime prices were down by -1.3% in the three months to September and -3.6% annually.
Prime Scotland prices were broadly flat, with a -0.2% drop in the three months to September, leaving them 0.2% higher than a year ago and 15.7% higher than in March 2020 before the beginning of the pandemic.
Scotland’s urban markets outperformed their more rural surrounds as the market continues its rebalancing post-Covid. However, fresh speculation around additional taxation has placed downward pressure in Scotland’s rarefied country house market, where prime prices fell by -1.4% in the three months to September.
The drop in new supply across Scotland’s prime market was most acute in Edinburgh City, but this did not impact agreed sales activity. Here, the city’s West End and popular inner suburbs of Bruntsfield, Morningside, Marchmont and Sciennes witnessed a rise in agreed sales during Q3 2025. There are now more competitive situations across the market, with a small increase in closing dates. Consequently, prime Edinburgh City prices went up by 0.9% in the three months to September 2025, leaving them 1.3% higher than a year ago. Whilst the number of available prime properties in Edinburgh has reduced, there is a wide choice of apartments, which has resulted in these properties taking longer to sell. However, family homes remain popular in sought-after areas close to schooling.
Prime £500,000+ markets outside Edinburgh also saw an increase in agreed sales during Q3 2025, led by St Andrews, North Berwick, Gullane, Dunblane, Bridge of Allan and Melrose. However, it is a price-sensitive market, with more available properties compared to last year, despite a levelling off in recent months. As a result, prime prices fell slightly by -0.4% in the three months to September, leaving them 0.2% higher than Q3 2024.
The number of agreed £500,000+ sales in Glasgow’s prime urban markets increased annually by 19% during Q3 2025, despite constrained supply. This was led by the West End, Park and popular suburbs of East Renfrewshire. Glasgow’s million-pound market, in particular, has seen a sharp uptick in agreed sales so far this year, with the suburb of Pollokshields witnessing a record number of registered transactions. Whilst availability across Glasgow has stayed level, prime prices saw a marginal drop of -0.2% in the three months to September, leaving them 0.7% higher than a year ago.
Prime markets surrounding Glasgow also saw an increase in agreed £500,000+ sales during Q3 2025, led by Killearn, Balfron and Aberfoyle in Stirlingshire, Helensburgh and Oban in Argyll, New Galloway and Castle Douglas in Dumfries and Galloway and Ayr, Alloway and Doonfoot in Ayrshire. But with more choice for buyers, prime prices fell slightly by -0.3% in the three months to September, leaving them 0.2% higher than Q3 2024.
Constrained £500,000+ supply led to fewer agreed sales across prime Perthshire during Q3 2025 compared to the same months of last year, especially above £1 million. However, areas around Perth City, including Bridge of Earn, Methven and Crieff saw more agreed sales. Across Perthshire, buyers continue to exercise caution, with running costs an important factor. As a result, prime Perthshire prices saw a marginal drop of -0.2% in the three months to September 2025. So far, the draw to Perthshire's private schools remains active despite the application of Value Added Tax on fees. However, buyers in some cases are reducing their offers due to the increase in the Land and Buildings Transaction Tax Additional Dwelling Supplement to 8%, which has impacted the second homes market.
Prime prices across Dundee, Angus and southern Kincardineshire were flat over the last year. Here, prime agreed sales up to £750,000 saw a YoY increase during Q3 2025, led by Broughty Ferry, Dundee’s West End, Arbroath, Forfar and Laurencekirk. With more choice for buyers, competitive pricing and good presentation are key, with refurbished and modern houses in demand.
The prime Aberdeen area market has been mostly active up to £750,000, with more balance between supply and demand. City areas led agreed sales growth, including the West End, Cults and Bieldside and the suburb of Westhill. However, the wider Aberdeenshire market has been relatively slower, with a reduction in agreed sales and prices.
The anticipation of potential tax changes ahead of the Autumn Budget will continue to weigh on sentiment, particularly at the top end of the prime market. Meanwhile, the prospect of any further rate cuts in the short term has also receded, given higher-than-expected inflation and muted economic growth.
In that context, the resilience of prime agreed sales in Scotland over £500,000 has been testament to the underlying demand, with competitively priced and well-presented homes attracting buyers from outside the country and achieving competitive offers.
Sellers who persevere and seek to press ahead with their sale regardless of broader factors are recognising the continued presence of motivated buyers in the market. Indeed, the number registering with Savills to purchase a prime Scottish property was 86% higher in the first nine months of this year compared to the same period of 2019 pre-pandemic.
The pool of buyers may see some growth in the immediate aftermath of the Budget, with the benefit of greater certainty. But it will take some time for any tax changes to be fully absorbed by the market before a price recovery takes hold.
< View our latest Q3 2025 updates here.
For more information, please contact your nearest Scotland office or arrange a market appraisal with one of our local experts.