House price growth in Scotland has slowed significantly over the past year, with average prices rising by just 1.9%. Despite this modest increase, Scotland’s housing market remains more resilient compared to England and Wales, where average prices have fallen.

Scotland’s housing market trends

According to the latest analysis by DJ Alexander, average house prices in Scotland increased by £3,532 over the year, rising from £183,152 in March 2025 to £186,684 in February 2026. This represents a 1.9% growth, which contrasts with the wider UK market where England and Wales saw average prices decline by £1,742, or 0.6%, during the same period.

Notably, Scotland’s average house price peaked at £193,044 in November 2025 before experiencing a subsequent fall of £6,360 in the following months. This pattern highlights a cooling market after a period of stronger growth.

Market slowdown and economic factors

David Alexander, chief executive of DJ Alexander, commented on the trends, stating: “These figures show that the housing market is slowing in Scotland.” He emphasised that this slowdown is reflected across the UK, with England and Wales already seeing average prices lower than a year ago.

Alexander attributed the market deceleration to several economic pressures, including the slower reduction in interest rates, the ongoing cost-of-living crisis, and rising unemployment levels. These factors are collectively dampening buyer demand and impacting price growth.

He also noted a shift in buyer behaviour, suggesting that some purchasers are being priced out of city centre markets and are instead looking to surrounding areas for more affordable options. This trend is evident in unexpected price rises in more affordable regions such as Inverclyde.

Regional price movements

Inverclyde recorded the most substantial cash increase in average house prices, rising by £11,422 over the year, equating to an 11.3% increase. This is particularly notable as Inverclyde remains the cheapest area to buy property in Scotland. Other areas with significant price growth include East Dunbartonshire (£10,880 increase), Moray (£10,303), Renfrewshire (£10,138), and South Ayrshire (£9,727).

Conversely, five areas experienced price declines. Aberdeen saw the largest fall, with average house prices dropping by £7,517. East Lothian, Highland, Stirling, and Midlothian also recorded decreases, though to a lesser extent, ranging from £196 to £2,352.

Edinburgh continues to be the most expensive place to purchase a home in Scotland, with an average price of £294,990, maintaining its status as a premium market within the country.

What this means for landlords

The slowing growth in house prices across Scotland suggests a more cautious market environment for landlords and property investors. While some regions are experiencing strong price increases, others are facing declines, indicating a varied landscape that requires careful local market analysis.

Landlords may find opportunities in areas like Inverclyde and East Dunbartonshire, where rising prices could signal growing demand and potential rental yield improvements. However, in regions such as Aberdeen and East Lothian, falling prices might reflect weaker demand or economic challenges, which could affect rental income stability.

Understanding these regional dynamics will be crucial for landlords aiming to optimise their portfolios and navigate the evolving Scottish property market.

Source: Based on reporting from Property118

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