David Alexander

The Scottish lettings and estate agency said that the latest data from the monthly house price index shows that between June 2024 and May 2025 average house prices in Scotland increased from £181,273 to £191,927.

This was an annual increase of 5.9 per cent, compared to a rise of 3.1 per cent in England and Wales over the same period.

Across Scotland there were substantial variations in price rises, with East Lothian recording the highest increase of £27,946; Midlothian rising by £19,700; Perth and Kinross up £18,938; Edinburgh increasing by £18,691; and East Dunbartonshire up by £17,962.

There were two areas which recorded a fall in average prices, with Aberdeenshire declining £5,690 and South Ayrshire dropping by £3,376. The next three lowest increases were in Aberdeen, which rose by £625; West Dunbartonshire increased by £1,055; while Moray rose by £3,161.

There were 12 areas which recorded an average price above £10,000. The most expensive place to buy a home in Scotland is East Lothian – with an average price of £297,042 while the cheapest area is Inverclyde at £113,679.

David Alexander, chief executive officer of DJ Alexander Scotland, said: “The Scottish housing market remains buoyant with an average increase of £10,654 – equivalent to a 5.9 per cent rise over the year – at a time when interest rates have fallen at a slower pace than anticipated alongside continuing concerns over the performance of the economy.

“Particularly striking is that the Scottish increase is almost double the percentage in England and Wales where average prices only rose by 3.1 per cent over the same period.

“With twelve areas recording an increase of over £10,000 this is a clear sign that demand remains strong from Scotland’s homebuyers. However, the gap between the most expensive place to buy and the cheapest is concerning and could indicate a growing divergence between some more affluent areas and the rest of Scotland.”

Mr Alexander continued: “The difference in average price between East Lothian and Inverclyde – respectively the most expensive and cheapest places to buy in the most recent data – is £183,363 which is substantial.

“There is a clear price gap developing around the capital and its surrounding areas with East Lothian, Edinburgh, and Midlothian the first, second and fourth most expensive areas to buy in Scotland while East Renfrewshire and East Dunbartonshire occupying the third and fifth places.

“As ever some parts of Scotland are booming while others appear to be relatively static or even declining. Continued uncertainty over the future of the North Sea oil and gas sector is causing a drag on prices in Aberdeenshire which had a £5,690 decline in average prices and a marginal increase of £625 in Aberdeen city itself.

“North, East and South Ayrshire alongside West Dunbartonshire are all in the bottom ten performing area indicating a considerable slowing of the market in these areas.”

Mr Alexander concluded: “Overall though the Scottish housing market remains in remarkably good health with strong average price growth and demand remaining good.”