July 2025 delivered the strongest level of sales‑agreed activity seen since 2020, as buyers responded favourably to competitively priced listings. According to Rightmove, agreed sales climbed 8% year‑on‑year, marking the busiest July in five years.

Competitive Pricing and High Inventory Fuel Momentum

This summer’s surge has been powered by a notable uptick in supply. The number of homes available to purchase is 10% higher than a year ago, delivering buyers improved choice and leverage. In turn, sellers have responded with price cuts: about one‑third of listings have seen reductions - the second‑highest seasonal level since 2012.

At a UK level, prices dipped by around 1.3% in August, aligning with typical mid‑summer trends and tempering the earlier steep declines seen in June and July. Overall, annual price growth remains modest - just 0.3% year‑on‑year.

Mortgage Rates Aid Affordability - but Caution Prevails

The Bank of England’s third rate cut of 2025 has nudged two‑year fixed mortgage rates down to approximately 4.49%, a boost for buyer sentiment though unlikely to spark major immediate declines in borrowing costs. Meanwhile, enhanced mortgage affordability rules have increased borrowing potential by up to 20% for some buyers, helping the UK avoid its usual summer sales lull perhaps.

Scottish Market Outlook: A Balanced Market

At Simpson & Marwick, we observe this dynamic with keen interest - Scotland’s regional property markets are already well‑positioned to benefit from these broader trends:

  • High inventory levels mirror or exceed UK norms, particularly in commuter hotspots and emerging towns - a boon for buyers.

  • Sellers pricing realistic properties are securing swift interest, aligning with the UK pattern of correctly priced homes moving faster.

  • In urban markets like Edinburgh, Aberdeen and Glasgow, affordability gains may spur renewed demand; meanwhile, regional markets such as Perthshire and the Highlands can see renewed movement as nearby buyers look to quality of life and space.

What Scottish Sellers and Buyers Should Do Now

For Sellers:

  • Price right from the outset. Listings that require reductions now take as long as 99 days to sell, compared to just 32 days for those priced accurately.

  • Be responsive to market cues - competition is elevated, and decisive pricing decisions differentiate successful transactions.

For Buyers:

  • Leverage abundant choice - decisive offers on well- priced homes are more likely to succeed.

  • Improved affordability and stable mortgage rates reduce monthly costs, especially for those budgeting strategically.

Looking Ahead: A Controlled, Confident Autumn

The current sales momentum - at its highest July level since 2020 - is a strong signal as we move into the autumn market. With selling heights tempered by realistic pricing and buyer affordability improving, Scotland’s market is poised for measured activity through year-end.

At Simpson & Marwick, we anticipate a resilient autumn market, underpinned by sensible pricing strategies and a restored confidence among Scottish buyers and sellers alike.