House Price Report shows market stabilising as regional trends become increasingly pronounced

ESPC’s latest House Price Report suggests the residential property market across Edinburgh, the Lothians, Fife and the Borders is becoming increasingly selective and locally driven, with regional performance diverging despite continued resilience across the wider market.

Covering the period from April to June 2026, the report shows average selling prices increased by 2.1% year-on-year to £291,815, while the median selling time improved to 21 days. Homes also continued to achieve an average of 102.1% of Home Report valuation, despite a modest easing in competitive bidding.

The quarter began against a backdrop of geopolitical uncertainty and financial market volatility, contributing to a more cautious market during April and May. However, activity strengthened during June, suggesting confidence is beginning to return as mortgage rates have eased and buyers adapt to changing market conditions.

One of the clearest regional trends was East Lothian’s continued outperformance. Average selling prices rose by 12.3% year-on-year, supported by increasing levels of new property coming to market and sustained growth in the premium sector. Sales of homes priced above £500,000 have continued to increase over recent years, highlighting ongoing demand for higher-value properties across the county.

Midlothian also recorded healthy annual growth of almost 5%, while West Lothian and West Fife posted increases of 8% and 4% respectively. Edinburgh and East Fife both recorded modest annual price declines of 1.3%.

Although overall sales volumes and new listings remained below the levels seen during the same period in 2025, market fundamentals remained positive. More than 85% of homes were marketed using the ‘offers over’ strategy, up from 76.5% a year earlier, demonstrating continued confidence among sellers and agents in pricing strategies.

Meanwhile, the proportion of properties going to a closing date reduced from 21.9% to 19.7%, indicating that while competition has eased slightly, demand remains robust for well-priced stock.

Paul Hilton, CEO of ESPC, said: “The data suggests the market is evolving rather than slowing. Buyers remain active, but they’re becoming increasingly selective, making accurate pricing and local market expertise more important than ever.

“East Lothian has been a particularly strong performer this quarter, not only recording significant house price growth but also seeing increased activity in the premium market and more homes coming to market. It demonstrates how local market dynamics continue to outperform wider national trends.

“Encouragingly, we saw momentum build through June following a more cautious start to the quarter. While economic uncertainty hasn’t disappeared, the market appears to be adjusting, with confidence gradually returning among both buyers and sellers.”

The report highlights the importance of analysing local market conditions rather than relying solely on national trends, with significant differences in performance continuing to emerge across individual regions.

For more information, visit espc.com.