Authored by the expert who managed and guided the team behind the UK Property Pack
Yes, the analysis of Edinburgh's property market is included in our pack
Property prices in Edinburgh are rising steadily as we reach mid-2025.
The Edinburgh property market has shown remarkable resilience, with average prices reaching £304,294 in April 2025, marking a 6.8% year-on-year increase. This growth outpaces both the Scottish and UK averages, cementing Edinburgh's position as Scotland's most expensive property market.
If you want to go deeper, you can check our pack of documents related to the real estate market in the UK, based on reliable facts and data, not opinions or rumors.
Edinburgh property prices increased by 6.8% year-on-year as of April 2025, with the average home now costing £304,294.
The city centre leads growth with prices up 10.6% annually, while areas like Leith and Stockbridge remain particularly hot, with strong demand driving competitive bidding despite increased housing supply.
| Area | Average Price | Annual Change |
|---|---|---|
| City Centre | £353,811 | +10.6% |
| Stockbridge | £481/sq ft | +0.36% |
| Leith | £316,219 | +21.9% |
| West Edinburgh | £211,809 | +10.1% |
| East Edinburgh | £274,001 | +7.7% |
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
What's the current average property price in Edinburgh as of June 2025?
The Edinburgh property market continues to show strength as we reach the middle of 2025.
The average selling price of residential property in Edinburgh reached £304,294 in the period from February to April 2025, according to the latest ESPC data. This represents a significant 6.8% increase compared to the same period in 2024.
The Edinburgh city centre commands even higher prices, with properties averaging £353,811 - a remarkable 10.6% year-on-year increase. For those looking at specific property types, detached houses and terraced properties saw the strongest growth at 9.8%, while flats increased by a more modest 4.0%.
Different data sources show slight variations in these figures. Official ONS data indicates Edinburgh homes averaged £290,000 for properties bought with a mortgage in March 2025, while first-time buyers paid an average of £242,000.
Edinburgh remains Scotland's most expensive city for property, significantly outpacing the Scottish average of £171,000 and maintaining its position as a premium market within the UK.
Which Edinburgh neighborhoods saw the biggest price increases in 2025?
Several Edinburgh neighborhoods have experienced exceptional price growth in 2025, with some areas seeing double-digit increases.
Leith stands out as the star performer with an extraordinary 21.9% annual price increase, bringing average prices to £316,219. This former industrial area has transformed into Edinburgh's trendiest neighborhood, attracting young professionals and creative businesses.
The city centre, encompassing prestigious areas like New Town, Old Town, and Stockbridge, recorded an 8.4% increase with prices reaching £341,289. North-West Edinburgh, including South Queensferry, saw impressive growth of 18.1%, with average prices hitting £309,287.
| Neighborhood | Average Price 2025 | Annual Growth | Key Appeal |
|---|---|---|---|
| Leith | £316,219 | +21.9% | Waterfront regeneration, startup scene |
| Dalkeith | £282,662 | +22.5% | Family-friendly, good transport links |
| City Centre | £341,289 | +8.4% | Prime location, Georgian architecture |
| South Queensferry | £309,287 | +18.1% | Scenic location, improving infrastructure |
| Portobello | £303,516 (2-bed flats) | +11.7% | Beach proximity, community feel |
West Edinburgh areas like Roseburn, Murrayburn, and Gorgie have also performed strongly with 10.1% growth, offering more affordable options at £211,809 on average.
It's something we develop in our UK property pack.
How are mortgage rates affecting Edinburgh property prices in June 2025?
Mortgage rates have become more favorable in 2025, providing crucial support to Edinburgh's property market.
The Bank of England base rate currently stands at 4.75%, down from the peaks of early 2023. Economists surveyed by The Times expect at least four rate cuts throughout 2025, potentially bringing the base rate down to 3.75% by year-end.
Average mortgage rates have already fallen to around 4.1% for fixed-rate deals, making homeownership more affordable than it has been in two years. For a typical first-time buyer home in Edinburgh, mortgage repayments are now approximately 17% cheaper than renting, according to Zoopla data.
This improved affordability has directly impacted buyer behavior. First-time buyers now represent 36% of all property transactions in Edinburgh, up from previous years. The combination of lower rates and rising incomes (up 15% between 2022-2024) has increased purchasing power significantly.
Lenders are also adapting with more flexible affordability assessments, helping buyers navigate the market despite prices remaining at historic highs. This lending evolution is expected to continue supporting price growth throughout 2025.
What impact has the rental market had on Edinburgh house prices?
Edinburgh's rental market dynamics are creating interesting effects on property sale prices in 2025.
Rental supply has surged dramatically, with April 2025 seeing a record 1,383 new rental listings - a 46% year-on-year increase. This abundance of rental properties has cooled rental inflation to 4.8% annually, down from 14.5% a year earlier.
Private rents in the Lothian area (including Edinburgh) now average £1,416 per month as of April 2025, representing a 6.2% annual increase. While still growing, this slower pace of rental growth is reducing the urgency for buy-to-let investors to purchase properties.
The Land and Buildings Transaction Tax (LBTT) supplement for buy-to-let properties increased to 6%, making investment properties less attractive. Many landlords are choosing to exit the market, contributing to increased housing supply for owner-occupiers.
However, luxury rental markets in areas like New Town and Stockbridge remain tight, with rents up 8-10% since March 2023. This segmented market means prime areas continue attracting investor interest despite overall cooling.
The shift from investor to owner-occupier demand is helping stabilize prices while maintaining steady growth, creating a more balanced market overall.
Are property prices in Edinburgh forecast to rise further in 2025-2026?
Multiple forecasting agencies predict continued price growth for Edinburgh through 2025 and into 2026.
For the remainder of 2025, analysts expect Edinburgh property prices to rise between 3% and 5%. Umega's Property Market Forecast suggests potential growth up to 5%, while more conservative estimates from Hamptons predict 3% growth factoring in various economic headwinds.
Looking into 2026 and beyond, the outlook remains positive but more moderate. Savills forecasts suggest Edinburgh house prices could be 10-12% higher by mid-2028, implying annual growth rates of 3-4% over the coming years.
Key factors supporting these predictions include:- Continued interest rate reductions making mortgages more affordable- Edinburgh's strong economic fundamentals and job market- Limited housing supply due to geographical constraints- Growing population and sustained demand- The city's appeal to both domestic and international buyers
However, analysts warn that sustained high growth may become unsustainable if wages don't keep pace with prices, suggesting periodic adjustments rather than continuous steep rises.
Which property types are experiencing the strongest price growth?
Different property types in Edinburgh are showing varied price performance in 2025.
Detached houses and terraced properties lead the growth with an impressive 9.8% annual increase. These property types benefit from increased demand for space, driven by remote working trends and families seeking larger homes.
Two-bedroom flats in specific areas are seeing exceptional growth. In Gorgie, they've experienced a remarkable 76.9% year-on-year increase in interest, while Portobello two-bedroom flats averaged £303,516, up 11.7% annually.
| Property Type | Annual Price Growth | Average Price Range |
|---|---|---|
| Detached Houses | +9.8% | £550,000+ |
| Terraced Properties | +9.8% | £350,000-£500,000 |
| Flats (General) | +4.0% | £200,000-£400,000 |
| 2-Bed Flats (Gorgie) | +76.9% (demand) | £250,000-£300,000 |
| Prime Properties (Stockbridge) | +0.36% | £546,000 average |
New-build and renovated properties remain in strong demand, especially in regeneration areas like Granton Waterfront. Properties with outdoor spaces - terraces, balconies, or gardens - command premium prices following pandemic-driven preference changes.
Energy-efficient homes with smart technology features are particularly sought after, catering to young professionals and tech workers in areas like Leith and New Town.
How does Edinburgh compare to other Scottish cities for property prices?
Edinburgh maintains its position as Scotland's most expensive property market by a significant margin.
With an average price of £304,294, Edinburgh properties cost 64% more than the Scottish average of £171,000. This premium reflects the capital's strong economy, limited housing supply, and enduring appeal to buyers.
Glasgow, Scotland's largest city, has average prices of £186,000 - showing strong growth at 8.9% annually but from a much lower base. The price gap between Edinburgh and Glasgow has widened to over £118,000.
Aberdeen presents a stark contrast, with prices averaging £134,000 and falling by 3.9% year-on-year. The oil capital continues to struggle with oversupply and reduced demand following industry downturns.
Within Edinburgh itself, price variations are substantial. While the city centre averages £353,811, more affordable areas like West Edinburgh offer properties around £211,809, providing options for different budgets while remaining within the capital.
This price differential reinforces Edinburgh's status as Scotland's premier property market, attracting both lifestyle buyers and investors seeking long-term capital appreciation.
What role are foreign investors playing in Edinburgh's property market?
Foreign investment in Edinburgh's property market remains steady but hasn't significantly increased in 2025.
While Edinburgh traditionally attracts international buyers due to its prestigious universities, historic appeal, and stable market, there's no strong evidence of a surge in foreign investment compared to previous years.
The increased LBTT supplement of 6% for second homes and buy-to-let properties has tempered overseas investor enthusiasm. This additional cost, combined with increased regulatory scrutiny, makes investment properties less attractive to international buyers.
Foreign buyers who remain active tend to focus on:- Prime properties in New Town and Stockbridge for personal use- Student accommodation near universities- Long-term rental properties in established neighborhoods- Mixed-use developments in regeneration areas
Brexit-related uncertainties continue to affect investor confidence, though Edinburgh's fundamentals - strong economy, world-class education, and cultural appeal - maintain its attractiveness.
The market appears to be transitioning toward more owner-occupier demand rather than speculative investment, creating a healthier long-term foundation for price stability.
How quickly are properties selling in Edinburgh right now?
Edinburgh's property market is moving at a brisk pace in June 2025, with homes selling faster than a year ago.
The median selling time across Edinburgh, the Lothians, Fife, and Borders is currently 27 days, just one day slower than the same period in 2024. However, in the most recent winter period (November 2024-January 2025), properties sold in just 22 days - two days quicker than the previous year.
West Fife & Kinross leads with the fastest sales at just 14 days, while Edinburgh's different neighborhoods show varying speeds:- Easter Road: Properties achieving 106.0% of Home Report valuation- City Centre: 20-day average selling time- South-West Edinburgh: 15-day median (fastest in the city)- North-West Edinburgh: 27-day median (slowest)
Currently, 20.4% of properties go to a closing date, down from 21.8% last year, indicating slightly less competition. However, 72.6% of properties still sell at or above their Home Report valuation, showing continued strong demand.
The combination of increased property listings (up 4.8% year-on-year) and sustained buyer interest creates a balanced market where serious buyers act quickly but have more choice than in recent years.
What are the main risks that could affect Edinburgh property prices?
Several economic and political factors could impact Edinburgh's property market trajectory in the coming months.
Rising interest rates remain the primary concern. If the Bank of England needs to tighten policy again due to persistent inflation, this could dampen affordability and reduce buyer demand. Current predictions of rate cuts could reverse if economic conditions change.
Tax policy changes present another risk. Further increases in property taxes or additional restrictions on short-term lets could impact investor demand. The introduction of VAT on private school fees may affect family home prices near sought-after state schools.
Economic headwinds include:- Potential UK or global recession reducing employment and confidence- Brexit-related uncertainties continuing to affect market sentiment- Energy price volatility impacting household budgets- Wage growth failing to keep pace with property price increases
Political instability, particularly around Scottish independence discussions or changes in housing policy ahead of the 2026 Scottish Parliament elections, could introduce market volatility.
However, Edinburgh's fundamental strengths - limited housing supply, growing population, and diverse economy - provide resilience against these risks.
It's something we develop in our UK property pack.
Should first-time buyers wait or buy now in Edinburgh?
First-time buyers face a complex decision in Edinburgh's current market, with both opportunities and challenges.
The case for buying now includes improved affordability compared to renting (17% cheaper on average), expected further interest rate cuts in 2025, and the ability to lock in current rates before potential future price rises. With average first-time buyer prices at £242,000, buyers can still find properties below the £250,000 threshold.
Areas offering value for first-time buyers include:- Dunfermline: Two-bedroom flats averaging £141,293- Gorgie: Strong growth potential, increasing popularity- Musselburgh: Good transport links, properties under £175,000 LBTT threshold- West Edinburgh: More affordable at £211,809 average
However, challenges remain with prices at historic highs, competition still strong in popular areas, and economic uncertainty potentially affecting job security.
Most analysts suggest that waiting for significant price drops is unlikely to pay off, given Edinburgh's structural undersupply and continued population growth. First-time buyers with stable income and adequate deposits may find 2025 offers better conditions than recent years.
The key is choosing the right area and property type that balances affordability with long-term growth potential.
What's driving demand for property in Edinburgh despite high prices?
Edinburgh's property market continues attracting buyers despite record prices due to multiple compelling factors.
The city's economic strength remains paramount. Edinburgh's diverse economy spanning financial services, technology, tourism, and education provides stable, well-paying employment. The thriving fintech and startup scene particularly attracts young professionals who drive housing demand.
Quality of life factors include:- World-class universities attracting students and academics globally- Rich cultural heritage with festivals, arts, and historic architecture- Excellent transport links including airport and rail connections- Highly-rated schools making it attractive for families- Compact city layout with walkable neighborhoods
Geographic constraints limit new housing supply. Bordered by hills and sea, Edinburgh cannot expand outward easily, creating permanent scarcity in desirable central locations. New developments struggle to keep pace with population growth.
The city's international reputation as a safe, stable investment location continues attracting both domestic and overseas buyers. Despite high prices, Edinburgh properties are seen as long-term stores of value.
Recent infrastructure improvements, including tram extensions and regeneration projects, enhance connectivity and create new desirable areas, sustaining demand across different price points.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Edinburgh property prices are definitely going up, with strong momentum expected to continue through 2025 and beyond. The market has demonstrated remarkable resilience with a 6.8% annual increase, outperforming both Scottish and UK averages.
For potential buyers and investors, Edinburgh remains an attractive market despite high prices. The combination of limited supply, strong economic fundamentals, improving mortgage affordability, and sustained demand from both owner-occupiers and investors supports continued price growth. While the pace may moderate from current levels, the long-term trajectory remains firmly upward, making the answer clear: Yes, a lot - Edinburgh property prices are rising significantly and this trend shows no signs of reversing.
Sources
- ESPC House Price Report
- ONS Housing Prices in Edinburgh
- Umega Property Market Forecast 2025
- Zoopla Scottish Property Market Analysis
- Neilsons Market Update 2025
- Edinburgh Chamber of Commerce Property Report
- InvestRopa Edinburgh Real Estate Market Analysis
- Rightmove 2025 House Price Forecast
- The Macgregor Report
- MOV8 Real Estate February 2025 Update
Get fresh and reliable information about the market in Edinburgh
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
We made this infographic to show you how property prices in the UK compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It's an easy way to spot where you might get the best value for your money. We hope you like it.