This yearly rise demonstrates robust market demand even during traditionally slower months, resulting in the strong activity trends observed in the latter half of 2024 continuing into 2025.

The market has experienced in an increase in the average selling price across the majority of areas covered in this report, most noticeably in West Fife & Kinross where the average selling price increased 11.8% to £231,582. Midlothian saw its average selling price rise to £260,237, an increase of 4.4% year-on-year, while Edinburgh’s average rose 3.6% to £300,744. In the Scottish Borders, property prices increased by 5.1% to £227,164, while in East Lothian, the average selling price dropped marginally 0.1% to £275,007. West Lothian also experienced a slight dip in average selling price, decreasing 0.6% to £241,818.

In the capital, Edinburgh North West saw a significant increase in average selling prices, with an annual rise of 20% resulting in the average cost of a home being £290,041. Highlighting the area as a popular place to live for easy commutes into the city centre, locations in Edinburgh North West saw notable growth. Kirkliston increased 37.1% year-on-year to an average price of £331,044, while the sought-after South Queensferry rose 17.4% to £273,420. 

In the east of Edinburgh, ever-popular Leith saw notable increases with two-bedroom flats rising 12.5% annually to an average of £261,486. One-bedroom flats in Leith also saw a healthy increase, jumping up 8% year-on-year to £183,797. In Portobello, two-bedroom flats enjoyed an increase of 11.7% annually, to an average selling price of £303,516.

Homes sold for an average of 101.6% of their Home Report valuation, indicating a stable market. All but two of the areas covered by ESPC experienced a decrease in the amount over the Home Report valuation paid by buyers – West Fife & Kinross rose 1.9% points to a healthy 103.2% over the Home Report valuation, and Edinburgh increased 0.1% to 101.9%.

Strong demand from buyers with speedy sales across the regions

The median selling time was 22 days, two days faster than the previous year. West Fife & Kinross had the fastest sales, while East Fife had the slowest. Two-bedroom houses in Dunfermline were the quickest-selling property type overall.

Despite a slight decrease in new listings, sales volumes increased by 21.6%. Leith and Dunfermline were the most sought-after locations, with Trinity and Musselburgh showing significant growth in sales.

Looking at property types, two-bedroom flats in Leith were the biggest sellers, with sales volumes for this property type up 30% year-on-year. They were closely followed by one-bed flats in the same location – the sales volume of this property type increased by 36.4%, hinting at an influx of new buyers in the market looking to purchase for the first time.

Gorgie has been widely regarded as an emerging neighbourhood, and data from this three-month period highlights its growing appeal among buyers. Sales of one-bedroom flats in the area saw a significant increase of 65%, a trend that comes as no surprise given that this is one of the most affordable property types in Edinburgh.

Outside of the capital, four-bedroom houses in Dunfermline were the biggest sellers, seeing an increase in sales volume of 61.1% compared to November 2023-January 2024.

Steady volumes of new homes coming to the market

Despite the 2.1% drop in the volume of homes coming onto the market in November 2024-January 2025 compared to the previous year, there was still a decent amount of choice for potential buyers. However, the slight decrease has brought more competition during the period, resulting in homes going under offer two days quicker than the previous period.

In a trend seen for many months, Dunfermline, Leith and Corstorphine generated the highest levels of property listings. Although achieving the most insertions, Dunfermline managed just a 1% increase year-on-year, while Leith was up 22.6%, and Corstorphine had 30.9% more listings than the same time the previous year.

Once again, two-bedroom flats in Leith were the most commonly listed, followed by three-bedroom houses in Dunfermline. There was a notable increase in the volume of one-bedroom flats in Gorgie coming on to the market, with levels rising 76.9% year-on-year, highlighting its potential as a great place to buy in the capital for first-time buyers.  

It was good news for sellers when it came to marketing their properties too – 85.1% of homes were listed using the offers over pricing structure, up from 75.5% the previous year.

CEO Paul Hilton said: “The property market is usually much quieter between November and January, however there was a lot of positivity. Overall, the market has remained relatively stable, and although property listings have remained at similar levels, sales volumes have risen significantly.

“Buyers continue to have a wider range of options, particularly those looking for one- and two-bedroom flats in popular areas of Edinburgh. This may be due to an increasing number of landlords choosing to leave the rental market and sell their properties in response to ongoing legislative changes, such as the increase in Additional Dwelling Supplement (ADS) from six percent to eight percent. The average selling price continues to rise at a steady pace, showing strong market demand even in typically slower periods.

“Dunfermline, along with the areas surrounding Leith and East Edinburgh, remains a property hotspot, particularly popular with first-time buyers and those upgrading to their first family homes. There have also been positive signs in West Lothian, with homes being snapped up far quicker at this time of year compared to the previous year.”