Podcast: Edinburgh Property Market Update: Key Trends from Q1 2026

On this episode of the ESPC Property Show, Paul & Megan are joined by a panel of property experts, including Robbie Horn (Gillespie Macandrew), Laura Shields (Monarch Legal), James Armstrong (DMD Law), and Graham White (Anderson Strathern). Together, they reflect on the performance of the Edinburgh property market in the first quarter of 2026, sharing insights on buyer behaviour, pricing trends, and what lies ahead.

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Key Insights

Market overview: a resilient start to 2026

The year began with strong momentum, as January and February delivered a buoyant market with high levels of activity. While global geopolitical events created some hesitation in March, this mainly impacted the number of new listings rather than buyer demand. Properties continued to sell well, including those that had been on the market for longer periods. Overall, Edinburgh has once again demonstrated its resilience, with prices remaining stable and buyer confidence holding firm.

Buyer behaviour and urgency

Many buyers, particularly first-time buyers and families, are acting quickly to secure properties. With mortgage rates holding steady and the possibility of future increases, those with agreements in principle are keen to lock in deals. Two clear groups have emerged: necessity-driven buyers who must move and are proceeding regardless of market conditions, and discretionary buyers—such as investors or downsizers—who are more cautious and willing to wait.

Interest rates and affordability

Interest rates have remained stable at around 3.75%, contrary to earlier expectations of cuts. Even so, buying is still often more financially attractive than renting, which continues to support demand. Experts suggest that while rate reductions may come later in the year, the current environment is encouraging committed buyers to move now rather than delay.

Supply, demand, and stock levels

Although there has been a slight increase in listings compared to last year, there is still a shortage of available homes relative to demand. This imbalance continues to underpin the market, particularly in desirable areas. However, buyers are noticing a lack of variety, which is influencing decision-making and competition levels.

Changing seasonality in the market

The traditional spring surge in listings is still evident, with many properties coming to market after being valued late in 2025. However, seasonality is less pronounced than in the past due to the influence of online property platforms, which allow buyers to search year-round. January is now one of the busiest months for new listings, reflecting this shift in behaviour.

Pricing trends and offers

The market has normalised compared to previous years, with properties achieving an average of just over Home Report value (around 101%). This is a notable change from the competitive peaks where homes regularly sold for 10–15% over valuation. Performance varies depending on property type and location, with prime areas still attracting strong premiums, while new builds face more competition due to increased supply and developer incentives.

Impact of renovation and building costs

High construction and renovation costs are influencing buyer decisions. Many are avoiding properties that require significant work, as the financial return is less certain. This has increased demand for homes in good condition, where buyers can move in with minimal additional investment.

The rise of property chains

The Scottish market is increasingly seeing the emergence of property chains, similar to those in England. Buyers are often securing their next home before selling their current one, which is leading to longer transaction times and a higher rate of fall-throughs. Mortgage processing delays are also contributing to extended timelines.

Common mistakes buyers make

Buyers are often caught out by overextending financially—offering too much on a new property while overestimating the value of their own. Others delay decisions in the hope of better market conditions, only to find prices or affordability shift against them. A lack of contingency planning for repairs is another frequent issue, particularly with older properties.

Advice for sellers

Sellers are encouraged to price realistically from the outset and avoid relying on outdated or anecdotal comparisons. A well-judged “offers over” strategy remains effective, but setting the price too close to or above the Home Report valuation can deter interest. Importantly, a strong buyer position—such as being chain-free or mortgage-ready—can often outweigh a slightly higher offer.

Looking ahead: the next 12 months

The outlook for the Edinburgh market is one of stability. While modest growth may occur at the lower end due to strong demand from first-time buyers, the middle and upper segments are expected to remain steady. Potential tax changes, including those affecting second homes, may influence investor activity and the rental market. Despite these uncertainties, the overall sentiment remains positive, with Edinburgh continuing to be seen as a desirable and dependable property market.