As we’re nearing the summer season of 2025, the Edinburgh prime property market presents a promising landscape for homeowners contemplating a sale. Buoyed by robust price growth, favourable mortgage conditions, and a stabilising economic environment despite recent inflation news, current indicators suggest that now is an opportune moment to capitalise on market momentum. Here are some of our reasons:
Edinburgh Property Market: Strong Growth and Resilience
Between February and April 2025, the average selling price of property in Edinburgh rose to £304,294, marking a 6.8% year-on-year increase. Notably, the city centre experienced a sharper rise of 10.6%, with average prices reaching £353,811. Neighbourhoods such as Leith, Portobello, and Joppa also saw significant growth, with eastern Edinburgh recording a 7.7% increase to £274,001.
This upward trajectory reflects sustained buyer demand throughout winter and spring and a limited housing supply, reinforcing Edinburgh’s appeal as a resilient property market.
Mortgage Rates: Attractive Opportunities for Buyers
As of May 2025, mortgage rates have become increasingly favourable. The most recent rise in inflation may lead to fewer interest rate drops than expected, but for several months now, buyers have had access to highly competitive rates.
Lloyds Bank currently offers a two-year fixed-rate mortgage at 3.72% and a five-year fixed-rate at 3.78%, while Nationwide provides a ten-year fixed-rate mortgage at 4.39%. Both large and small lenders have launched favourable rates for a wide variety of buyers circumstances and property values. These developments are encouraging more buyers to enter the prime property market, increasing competition and potentially leading to higher property valuations.
Interest Rates and Inflation: A Stabilising Economic Climate
The Bank of England reduced the base interest rate to 4.25% in May 2025, the second cut this year, aiming to support economic growth. Financial markets anticipate two further reductions by year-end, potentially bringing the rate down to 3.75%, although some warned that the pace of reductions might be too fast. Inflation figures published on 21 May 2025 were higher than expected and may lead to fewer cuts for the remainder of the year. Still, most people’s wages have been growing at a faster rate than inflation, and we remain far away from the peak inflation rates experienced in 2022. Overall, this economic environment has boosted buyer confidence and purchasing power, positively influencing the property market.
Why Now Is an Excellent Time to Sell
Several factors converge to make this an ideal moment to consider selling your period property in Edinburgh:
- High Demand and Rising Prices: The consistent increase in property values, especially in sought-after areas, indicates strong buyer interest.
- Favourable Mortgage Conditions: Lower interest rates and relaxed lending criteria are expanding the pool of qualified buyers.
- Economic Stability: A stabilising economy supports sustained demand in the housing market.
- Optimistic Market Forecasts: Analysts project continued growth in property prices, with expectations of a 3.5% increase in 2025 and a cumulative rise of over 20% by 2029.
Given these conditions, Edinburgh period property owners have a strategic opportunity to achieve favourable sale outcomes right now. For an informal chat about how your property might perform, contact Ativa Director Fiona Vernon on Fiona Vernon, on 07900 605674 or email [email protected].
