House prices rise in Scotland despite global uncertainty

​Buyers in Scotland get clear information upfront thanks to the Home Report (Picture: John Devlin)

House prices in Scotland continue to rise with performance north of the border significantly bucking the UK trend.

Strong growth has been reported, with the average house price in Scotland rising by by 4.4% annually to reach an average price of £222,716 in March, according to the Halifax.

Overall, house prices fell by -0.5% in March across the UK following a 0.3% rise in February

The average property price in the UK is now £299,677.

Northern Ireland continued to lead UK annual house price growth, with average prices up by 8.7% over the past year to reach £224,809.

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Amanda Bryden, head of mortgages, Halifax, said: “The recent increase in UK mortgage rates has been more modest than the sharp rises seen during the mini-budget of 2022.

“Further, many households will already be on fixed deals, protecting them from the latest rate rises.

“Taking all this into account, house prices may prove resilient, even if uncertainty weighs on market activity in the near term.”

Meanwhile, the Royal Institution of Chartered Surveyors (RICS) Residential Market Survey also found that house prices in Scotland continued to rise.

A net balance of +36% of respondents reported that values increased.

However, demand was reported to have softened. A net balance of -7% of respondents in Scotland reported that new buyer enquiries fell through March, and agreed sales were reported to have been marginally lower in number last month.

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When it comes to supply, a net balance of -13% of respondents in Scotland reported that instructions to sell fell for the first time since the end of last year, indicating that seller confidence has also been impacted.

Expectations for the market are also softer. Indeed, respondents, on balance, say that they expect prices to be lower in three months for the first time in over two years. And expectations for sales over the next three month are broadly flat.

However, whilst the survey indicates that the Scottish market has lost momentum, the picture is less negative than the UK as a whole, according to the research.

Ian Morton of Bradburne & Co in St Andrews said: “There is a general lack of confidence in the sales market from sellers and buyers due to world events, increasing living costs, mortgages and upcoming elections creating uncertainty.W

However, Marion Currie, registered valuer at Galbraith in Dumfries & Galloway said: “It was a busy end to March with several high value properties going under offer, reinforcing optimism for the spring/summer market. No signs yet of international turbulence affecting the market here in Dumfries & Galloway.”

In additon, the number of newbuild houses under development has fallen

The Scottish Government’s housing statistics quarterly update showed that newbuild starts in 2025 fell by 919 from 15,918 to 14,999 - which is the lowest 12-month figure since 2012/13.

The drop in private sector newbuilds was 362 (-2.9%) lower falling from 12,291 to 11,929, which is the lowest annual figure since 2013/14.

Edinburgh has the highest number of all sector newbuilds at 2,383 - which is 15.9% of the Scottish total. Glasgow city, however, only had 676 newbuild starts which is just 4.5% of the total

David Alexander, the chief executive officer of DJ Alexander Scotland, commented: “We keep hearing that the housing emergency is being addressed at the same time reading statistics which indicate a declining housebuilding sector. Given the current situation this newbuild data is a discouraging picture which will result in a continuation of rising house prices and rents, coupled with lengthening housing waiting lists.”