Scottish House Prices Outpace UK Average with 4% Annual Rise to £194,000
Scotland’s property market continues to show resilience, with the average house price climbing to £194,000 in August 2025, according to the latest UK House Price Index (HPI) figures. This marks a 4% year-on-year increase, outperforming the UK-wide average growth of 3%.
Despite wider economic uncertainty and fluctuating interest rates, Scotland’s housing market has remained robust, recording both annual and monthly gains. On a monthly basis, house prices rose by 0.3% compared to July 2025, while the seasonally adjusted increase stood at 0.1%. The Scottish HPI now stands at 110.7, based on a January 2023 baseline of 100.
Across the UK, the average property price reached £273,000, reflecting continued demand for quality housing despite affordability challenges.
A Registers of Scotland spokesperson commented:
“There was an increase of 4.0% (to £194,000) in the average house price for Scotland in the 12 months to August 2025. This compares to an increase of 3.0% (to £273,000) in average house prices for the UK as a whole.”
Sales Volumes and Regional Trends
Transaction levels have also surged, underlining renewed buyer confidence in the Scottish market. In June 2025, the number of residential sales reached 9,420, up 10.9% compared with June 2024. Registers of Scotland noted that transaction volumes are likely to increase further as delayed registrations are processed.
Detached and semi-detached homes remain the key drivers of growth, recording annual price increases of 5.5% and 6.7%, respectively. The average detached property now costs £356,000, while semi-detached homes average £222,000.
Flats and terraced homes saw more modest growth, reflecting the cooling demand in some urban centres. However, demand remains strong in commuter belts and family-oriented suburbs where space and outdoor areas are a priority for buyers.
Local Authority Highlights
Price growth was widespread across the country, with 30 out of 32 local authority areas reporting annual increases.
- Renfrewshire led the way with an impressive 12.1% jump, bringing the average home value to £165,000.
- East Renfrewshire remains Scotland’s most expensive market, with average prices reaching £298,000.
- At the other end of the scale, Inverclyde recorded the lowest average price at £117,000, highlighting continued regional disparities.
- Aberdeen City was the only major area to see a decline, with prices falling 4.3% to £141,000, reflecting ongoing adjustments in the local energy-sector economy.
A Resilient Market Amid Economic Shifts
Industry experts say Scotland’s housing market is showing signs of stability and cautious optimism, even as affordability and borrowing costs continue to challenge first-time buyers.
The steady performance across most regions suggests that demand remains strong, supported by relatively low unemployment, constrained housing supply, and a steady flow of relocations and investment from across the UK.
With house prices in Scotland rising faster than the UK average, analysts predict moderate but sustained growth through 2026 — particularly in suburban and semi-rural markets where lifestyle and value continue to drive demand.
