A Strong 2025 for the Edinburgh and Lothians Property Market
2025 continues to be another exceptional year for Neilsons Solicitors and Estate Agents – and for sellers and buyers across Edinburgh and the Lothians.
The local property market has remained remarkably resilient and active throughout the year, with strong sales performance, fast selling times, and robust buyer demand shaping another standout period for East Central Scotland.
A Confident Market with Record Results
Against a backdrop of improving mortgage rates, high lending availability, and sustained demand for homes, Neilsons has achieved an impressive 10% year-on-year increase in sales so far in 2025 –surpassing the ESPC’s average market growth of 6.5% courtesy of innovative marketing, excellent in-house systems, and strong professional guidance.
Sales prices are up +4.3% across the region, and properties marketed by Neilsons are selling in just 22 days on average – clear evidence of a confident, competitive, and fast-moving local market.
This performance demonstrates the difference a knowledgeable, proactive Solicitor Estate Agent makes. At Neilsons, every sale benefits from our expert valuation, tailored and innovative marketing options, and our deep understanding of local market dynamics.
What’s Driving the Momentum?
Favourable conditions for sellers
Strong buyer demand and stable interest rates have created excellent conditions for sellers across Edinburgh and the Lothians. Many properties continue to achieve or exceed Home Report valuation, and competition for well-presented homes in desirable areas remains high.
Stock remains consistent
Although listings have eased slightly in recent months due to a touch of seller hesitancy prompted by ill informed news headines, overall supply for 2025 is tracking closely with last year’s levels. Buyers are still enjoying a healthy range of options, and with mortgage rates predicted to continue to improve, confidence has returned. Many are now taking advantage of steady supply and competitive conditions to make their move. Despite the marginally lower volume of stock entering the market over the past three months sales are still fast and property prices continue to increase.
Local resilience leads the way
The data is clear: the Edinburgh and Lothians property market continues to outperform national trends. Local confidence and strong fundamentals – from steady employment to the enduring desirability of the city and surrounding areas – are driving sustained activity and results.
The Importance of Expert Advice in a Competitive Market
While conditions are strong, it’s a misconception that properties simply “sell themselves.”
With heightened buyer competition and price sensitivity, professional guidance remains essential.
At Neilsons, we continue to see multiple competitive scenarios, particularly for family homes and traditional flats in popular city and suburban areas. This makes both pricing and presentation strategy crucial for sellers – and decisive, informed professional support vital for buyers.
Our advice echoes what we’ve said throughout 2025:
- Sellers: Accurate pricing, high-quality marketing, and professional presentation are key to achieving the best result.
- Buyers: Be ready. Have your finances, Mortgage in Principle, and Solicitor in place before you start viewing. Acting quickly – and strategically – can make the difference between success and disappointment.
As ever, your choice of Solicitor Estate Agent matters.
Market Context: A Favourable Backdrop
With further Bank of England base rate cuts expected, the outlook remains encouraging for both buyers and sellers.
Locally, Edinburgh and its surrounding areas continue to lead the way. Our capital’s economic strength, international appeal, and limited supply of central homes are likely to maintain upward pressure on prices into 2026.
In 2024, The Scotsman confirmed that Edinburgh’s economy is now outpacing London’s for GDP per head – a remarkable milestone. Our “brilliant, beautiful, and endlessly innovative” city is now leading the UK not only in culture and creativity but in economic strength too.
This, coupled with Scotland’s regulated Solicitor Estate Agent system and transparent Home Report process, ensures our market continues to function more efficiently and fairly than many other parts of the UK.
Looking Ahead: Factors to Watch
As always, external economic, political and geopolitical influences will play a role. We await the full impact of the UK Government’s policies on the economy and property market and we welcome their proposal to regulate Estate Agents UK wide (as Solicitor Estate Agents we are already regulated by the Law Society of Scotland).
Locally, in a city where one in four children attend private schools, the introduction of VAT on private school fees could influence family home demand in areas with top-performing state schools. The Scottish Council of Independent Schools has already reported a 10% decrease to Edinburgh private school rolls since the introduction of the tax.
We’re also looking ahead to both the UK and Scottish budgets in the next few months and will report back on policies and changes that will impact home buyers and sellers in our area – keep an eye on our blog and social media for updates. The next Scottish Parliament election, expected in 2026, may also bring new housing policy proposals – and we’ll be watching closely to see how these evolve.
Experience, Adaptability, and Results
This is certainly not the time to rely on an inexperienced agent who can’t adapt to market nuances.
You should also be wary of an Agent who promises that you could achieve an inflated price for your property. Such Agents have an average selling time far longer than us and other Agents – because they invariably have to reduce the price after three months to a realistic level to achieve a sale. The price that an agent promises to achieve shouldn’t be the sole basis of your decision on who to sell with.
At Neilsons, we’ve navigated almost every conceivable market scenario over our 47 years in business, and our clients benefit from that depth of experience every day.
A property that is accurately valued, professionally marketed, and supported by our award-winning team is always best placed to maximise market potential – whatever the external conditions may be.
And for buyers, securing the home you want in a competitive marketplace takes expertise and strategy. That’s where Neilsons’ combination of local knowledge, legal insight, and unique innovative digital tools gives clients the critical edge in today’s fast-moving market.
Book a free consultation with Neilsons here!
