Mortgages Edinburgh – What’s New

Edinburgh Property & Mortgages House Prices in Edinburgh: Q3 2025 Market Report Edinburgh’s market in Q3 2025 shows steady price growth, fast sale times, and strong demand versus limited supply. Below is a clear, data-led snapshot for buyers, sellers, and investors—plus a practical mortgage update for late 2025. Citywide Avg (Q3 2025) £315,847 +3.3% to ...

Edinburgh Property & Mortgages

House Prices in Edinburgh: Q3 2025 Market Report

Edinburgh’s market in Q3 2025 shows steady price growth, fast sale times, and strong demand versus limited supply. Below is a clear, data-led snapshot for buyers, sellers, and investors—plus a practical mortgage update for late 2025.

Citywide Avg (Q3 2025)

£315,847

+3.3% to +4.3% YoY
Detached (avg)

£653,000

Fastest growth (+7.2%)
Median Time to Sell

21 days

2 days faster than 2024
Typical Offers

102.6%

of Home Report value

Market Overview & Regional Picture

Supply remains tight while buyer demand stays resilient across Edinburgh and nearby areas .

Average prices across Edinburgh rose by roughly 3.3%–4.3% year-on-year to £315,847 in Q3 2025. Across the wider region (Edinburgh, Lothians, Fife, Borders), the average sits around £298,933, with listings down ~5% but sales volumes up ~8% year-on-year—underscoring a seller-friendly environment with competitive bidding and shorter selling times.

Regional highlights: West Lothian £288,362 (+9.2% YoY), East Lothian £328,016 (+17.2%), Midlothian £273,011 (+2.3%), Scottish Borders £219,592 (most affordable).

City hotspots: Edinburgh East continues to outperform, with regular sales around 103.6% of Home Report valuation and notable premiums around Leith Links (often 106%+). Fastest sale times are in Edinburgh East (median 18 days) and the South West (20 days).

Property Prices by Type

Detached homes lead growth; flats remain the key entry point for first-time buyers.

Average prices by property type in Edinburgh (July 2025)
Property TypeAverage PriceAnnual Trend
Detached£653,000+7.2%
Semi-detached£424,000Steady
Terraced£357,000Stable to modest growth
Flats / Maisonettes£237,000+3.5%

Entry-level: Citywide first-time buyer flats start around £242,000. Area examples: Leith 2-bed flats average £261,486 (+12.5% YoY), Portobello 2-beds around £303,516.

Average sold price by number of bedrooms (Oct 2025)
BedroomsAvg Sold Price
1 bed£231,610
2 beds£291,502
3 beds£436,398
4 beds£610,317
5 beds£1,117,884

Mortgages in Edinburgh — Late 2025 Snapshot

Rates steadying; criteria easing at some lenders; 5-year fixes often pricing below 2-year.

Typical first-time buyer rates span ~4.33%–5.22%, with 95% LTV deals at the top end (c. 5.22% two-year; 5.15% five-year). With 25% deposits, pricing improves to roughly 4.33% (2-year) and 4.40% (5-year). Recent weeks brought small increases of about 0.01%–0.05%, yet rates remain below the same period last year across LTV bands.

Criteria trends: Barclays now considers 100% of overtime/bonus/commission in affordability; Clydesdale lifted interest-only LTV to 75% and extended free valuations up to £3m. Selected BTL lenders (e.g., Paragon, The Mortgage Works) trimmed rates or launched limited-edition products.

2-Year vs 5-Year Fixed

The gap between 2- and 5-year fixes is narrow (and sometimes inverted), with many 5-year products cheaper than 2-year equivalents. On a £200,000 mortgage, the monthly difference often comes in around £20–£30, though setup fees for 5-year deals can be £1,000–£1,500 higher. Many first-time buyers still prefer 2-year fixes for flexibility, but interest in longer fixes is rising as households seek payment certainty through 2030.

Demand, Supply & Hotspots

Listings down, sales up: a tightening market with quick turnarounds.

With listings down about 5.1% but sales volumes up around 8% year-on-year, competition remains intense. Median selling time is about 21 days citywide, and many properties secure above Home Report valuation (Edinburgh average ~102.6%).

Where’s hot: Leith Links, Bonnington, and Abbeyhill frequently see best-in-class premiums and swift sales. Family homes in Dunfermline and Corstorphine continue to draw steady demand. The £1m+ tier remains active in Morningside and New Town, aided by lender confidence and extended valuation incentives.

How Q3 Compares with Earlier 2025

Momentum held from spring into summer, with premium/coastal micro-markets leading.

In Q1 2025, the city average (~£304,064) was already tracking +6.8% YoY, with city-centre averages around £352,568. Spring and summer sustained upward pressure, especially in sought-after districts and coastal pockets. Q3 kept that trajectory despite fewer new instructions.

Note: figures consolidate publicly available market snapshots and portal summaries for clarity.

Practical Takeaways for 2025 Buyers & Sellers

Actionable tips drawn from the data above.

  • Buyers: Get agreement in principle early and budget for offers above valuation in hot zones (e.g., Leith Links). Consider 5-year fixes where pricing is sharper and you value payment stability.
  • Upsizers: Detached stock is appreciating fastest; plan timelines around shorter marketing windows and visibility boosts (professional photos, energy-efficiency highlights).
  • First-time buyers: Flats remain the main entry route; widen search to neighboring areas for value and faster move-ins.
  • Investors: Monitor BTL product tweaks (LTV caps, limited-edition rates) and local yield pockets; factor in any budget or regulatory changes flagged for autumn/winter.

Edinburgh Property & Mortgage FAQ (Late 2025)

Quick answers to the most common questions right now.

Are house prices in Edinburgh still rising?
Yes—Q3 2025 shows annual growth of roughly 3.3%–4.3% citywide, with detached homes leading. Momentum persists despite fewer new listings.
How quickly are homes selling?
Median selling time is about 21 days, with the quickest areas (Edinburgh East and South West) typically under three weeks.
What mortgage rates can first-time buyers expect?
Around 4.33%–5.22% depending on deposit and term. 95% LTV is usually the highest; stronger deposits (e.g., 25%) secure lower pricing.
Is a 2-year or 5-year fix better right now?
Many 5-year fixes are pricing below 2-year equivalents, but they can carry higher fees. Choose based on flexibility needs, fee impact, and time horizon.
Are lenders loosening criteria?
Some—e.g., Barclays counting 100% of overtime/bonus and Clydesdale lifting interest-only LTV to 75% with extended valuation offers—show targeted easing to support borrowers.

Sources & Further Reading

Explore the full market context behind the figures summarised above.