Scotland's residential property market navigated the first quarter of 2026 with characteristic resilience, decisively outperforming the wider UK average. While the economic landscape presented a complex picture—with inflation keeping borrowing costs higher for longer—the Scottish market found stability through a much-needed increase in property listings and robust wage growth. The market has transitioned to a more sustainable pace, providing buyers with greater choice and a less frenzied environment.
To help our clients navigate this changing landscape, Simpson & Marwick has just released our comprehensive Q1 2026 Scottish Residential Property Report. Here is an exclusive snapshot of the trends that defined the start of the year across the country.
The Macro Picture: Scotland Defies UK Trends
The data from the first quarter is clear: Scotland has shown relative strength compared to England. In March 2026, the average house price in Scotland reached £187,000, representing a positive 1.6% annual increase. This sits in stark contrast to the UK-wide annual house price change of 0.0% for the same period.
This resilience is sustained by key economic pillars. While average two-year fixed mortgage rates climbed to around 5.79%, creating a meaningful headwind, the market was actively supported by real wage growth. Total pay grew by 4.1% year-on-year in Q1 2026. We also witnessed a distinct shift in buyer preferences: semi-detached homes led the gains with a 4.4% annual price increase as buyers stretched for more space, whereas flats and maisonettes saw a 1.4% decrease under affordability pressures.
Regional Snapshots: Where Did the Market Move in Q1?
- Edinburgh: Scotland’s capital recorded an average house price of £289,857, a marginal dip of 0.2%. However, the prime property segment remained exceptionally resilient and actively outpaced the wider market. In the £750,000-plus bracket, properties sold in a median of just 23 days—a full 36 days quicker than last year—achieving 101.8% of their Home Report valuation on average. Key catchments like EH12 surged, achieving an 8.8% increase in average selling price.
- East Lothian: East Lothian experienced a slight cooling, with an average house price of £277,238, representing a 1.8% annual decrease. This reflects a natural market adjustment as new listings increase, moving the market to a more sustainable pace and giving buyers a wider selection. Despite this, well-presented homes are still achieving close to or above Home Report values.
- Aberdeen: The Aberdeen market showcased a distinct, localised dichotomy between the city and the shire. The City of Aberdeen saw a slight 1.6% annual decrease to £133,906, while Aberdeenshire experienced positive growth, with average prices rising 1.0% to £196,787. Suburban and rural properties continue to draw buyers seeking more space, while the urban centre adjusts.
- Highlands & Islands: The Highland local authority area demonstrated steady appeal, with average house prices rising 1.1% to reach £211,875. Well-presented properties continue to draw robust interest from local movers and relocators driven by a consistent demand for space.
- Dundee, Tayside & Perth: Dundee maintained its reputation for stability and affordability, recording a 0.6% annual price increase to £134,392. This served as an accessible entry point for first-time buyers against the backdrop of broader Tayside adjustments, where Perth and Kinross dipped 0.8% and Angus decreased by 1.8%.
- The Fife Coast: Fife remained a reliable performer in early 2026, with average prices increasing 1.1% year-on-year to £170,395. Sustained by strong connections to central belt economies, the region continues to offer a vital blend of space, connectivity, and relative affordability.
- Glasgow: The City of Glasgow recorded solid growth, with average prices rising 1.2% year-on-year to £184,281. However, the search for value has significantly benefited surrounding commuter areas. Inverclyde saw an impressive 11.0% annual price surge to £112,529—the highest percentage change of any Scottish local authority in the period.
Stay Informed with Simpson & Marwick
With an increase in new listings giving buyers more choice, pricing accuracy is absolutely paramount for sellers. For buyers facing increased borrowing costs, this current market offers a less frenzied pace, allowing you to progress with diligence rather than the speculative bidding wars of previous years.
The Simpson & Marwick Property Report is produced quarterly, combining data-led analysis with on-the-ground market insights.
