Confidence Holding in the Sales Market - June 2025

Edinburgh’s property market is showing encouraging signs this spring. While the pace is a bit more measured compared to the same period last year, the market remains robust, with confidence holding steady among both buyers and sellers.

Rightmove data for Edinburgh and the Lothians reveals a significant uptick in market activity. New property listings are at their highest levels since before the pandemic, showing an 11% year-on-year increase and a 41% rise compared to 2023. Meanwhile, sales agreed have also seen a boost, with a 10% increase compared to last year and a 33% jump from 2023, indicating a clear upward trend in market momentum.

The trend across the UK mirrors that of the local market, with sales volumes increasing by 6% and a rise in new listings—15% more than at the same time last year. This influx is contributing to a more balanced market and helping to ease house price inflation, which is currently at 1.7% annually. Looking ahead, Zoopla predicts more sales activity but a slower pace of price growth in the months to come. (Source Zoopla)

Recent data  indicates that the average time for a property to go under offer in Edinburgh & The Lothians has slightly increased to 34 days, which is four days longer than May 2024. However, properties are still selling for an average of 101% of their Home Report value, and average sale prices in Edinburgh have risen by 6.8% compared to last year. Sales volumes have also increased by nearly 8%, demonstrating that the market is active. For sellers, this means relatively stable and predictable conditions, while buyers benefit from less competition and homes selling closer to their valuations, making it easier to secure a deal within their mortgage affordability.

Outlook

The Bank of England has recently made its second Base Rate cut of the year, bringing it down to 4.25%, with further reductions expected, potentially bringing the rate to 3.75% or lower by year-end. This is gradually leading to more favorable mortgage rates, giving buyers more flexibility. While lenders remain cautious, the dip in rates is already driving increased market activity.

The market remains strong, however pricing strategies are ‘sensible’ with surveyors often pricing properties at 2024 levels in order to generate more interest. As a result we are still seeing multiple notes of interest and closing dates for most good properties. Broadly speaking, for these properties we would expect to offer circa 10% above home report value to be successful in bidding.