Scottish Housing Market Surges Ahead as London Prices Slide, RSM Reports
Scotland’s property market is continuing to defy UK-wide trends, powering ahead with some of the strongest house-price growth in the country while London experiences a significant slowdown, according to the latest UK House Price Index from HM Land Registry and analysis from RSM UK.
The newest figures show UK average house prices rising 2.6% annually to £272,000 as of September 2025, despite a 0.6% monthly dip. Yet beneath the national picture lies a stark regional divide: Scotland, Northern Ireland and Yorkshire all recorded strong growth while nearly every other region saw monthly declines.
London remains the weakest performer in the UK housing market. Prices in the capital fell 1.2% month-on-month and 1.8% year-on-year, making it the only region to experience an annual price drop. Meanwhile, northern markets continue to lead the UK’s housing resurgence:
- Northern Ireland: +7.1% annual growth
- Scotland: +5.3%
- Yorkshire: +4.5%
These regions are driving the UK market forward, even as economic uncertainty weighs on buyer confidence elsewhere.
Demand Surges as Scottish Housing Market Outperforms the UK
According to Alan Aitchison, Head of Real Estate and Construction for Scotland at RSM UK, Scotland’s housing market is “continuing to outperform most of the rest of the UK,” fuelled by high rental costs, intense buyer demand, and a more resilient Scottish economy.
He notes that Scotland’s Central Belt, in particular, has seen rising competition among buyers as rental inflation pushes more households toward homeownership.
Low Supply and Development Delays Intensify Price Pressure
Aitchison highlights the continued imbalance between demand and supply:
“The first half of the year has been extremely sluggish for new-build completions north of the border, further widening the supply-demand gap.”
While approvals for new developments are beginning to pick up—particularly in affordable housing, student accommodation, and build-to-rent sectors—Aitchison warns that planning blockages and slow delivery continue to hold back Scotland’s ability to meet long-term housing needs.
Budget Certainty Expected to Boost Confidence
Looking ahead, Aitchison says the Chancellor Rachel Reeves’ Budget announcements on 26 November may provide much-needed clarity, particularly around Stamp Duty Land Tax (SDLT) and the expectation of follow-up guidance on Land and Buildings Transaction Tax (LBTT) from the Scottish Government.
He adds that uncertainty over these tax measures has significantly slowed market activity in recent months, and greater clarity could help restore momentum going into 2026.
