Property prices across East Central Scotland have risen by 2% year-on-year, reaching an average of £292,287, according to new data released by ESPC this week.
The figures, based on sales data from December 2025 to February 2026, suggest the housing market is responding to steadier economic conditions rather than experiencing a slowdown in demand. I have spoken to several estate agents across Edinburgh and the Lothians who confirm that buyer confidence appears to be returning after a turbulent 2025.
Market Rebalancing
The 2% increase represents what industry analysts are describing as a healthy rebalancing of the market. After several years of rapid price growth followed by a period of adjustment, this modest rise indicates stability rather than volatility.
The data shows variation across different property types and locations within East Central Scotland. Flats in Edinburgh’s city centre continue to attract strong interest from both first-time buyers and investors, while family homes in commuter towns such as Livingston and Dunfermline are seeing sustained demand.
Economic Context
The property market figures come against a backdrop of improving economic conditions in Scotland. With inflation forecast to fall to around 2% by April and interest rates showing signs of stabilisation, mortgage affordability is gradually improving for many potential buyers.
However, challenges remain. The ongoing shortage of housing stock continues to put upward pressure on prices, particularly for well-located properties with good transport links. First-time buyers in particular are finding it difficult to save deposits in line with rising house prices.
Estate agents suggest the spring selling season, which typically begins in March, will provide a clearer picture of market sentiment for the year ahead. Early indicators suggest steady rather than spectacular growth is likely to characterise 2026.
