Podcast: A roundtable discussion on the Edinburgh Property Market in Q3

On this week's episode of the ESPC Property Show, Paul & Megan are joined by no fewer than four ESPC member firms; Amy Howard from Neilsons, Rob McGregor from Gilson Gray, Ivan Ralph from Ralph Sayer and Jamie Sole from Blair Cadell. In this roundtable discussion, the panel discuss the current property market, from a drop in property listings to the outlook for the Christmas market as well as some insight on where property is moving fast.

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Key Insights

Market overview: A “robust but nuanced” quarter

The overall consensus from the panel was that the Edinburgh property market remains robust but nuanced. Despite some variations between areas and property types, activity has generally held steady through the third quarter of 2025. Edinburgh continues to demonstrate resilience compared with other parts of the UK, with well-valued and well-marketed properties still achieving strong results. While prices have levelled off from the inflated post-Covid peaks, this has brought a healthier and more sustainable balance to the market, described by the panel as “optimum conditions” where both buyers and sellers can act with confidence.

Stock levels: Fewer listings, strong demand

There has been a noticeable drop in property listings and available stock. ESPC data shows that listings between July and September were down around 5% year-on-year, with stock levels sitting roughly 10% lower than at the same point last year. In contrast, sales were up by 8%, indicating a tightening supply situation. This mismatch between demand and supply continues to underpin Edinburgh’s market strength, even as some buyers and sellers approach transactions with a little more caution.

Economic caution: Budget delays and market hesitation

That caution is partly linked to wider economic and political uncertainty. The delay to the UK and Scottish budgets has introduced a note of hesitation, with many home movers waiting to see what changes Chancellor Rachel Reeves and the Scottish Government might announce - particularly around property taxes. While higher-end buyers have been more likely to pause decisions, the first-time buyer market remains busy and active, providing vital momentum for the rest of the market.

Property hotspots: Family homes and commutable locations

When it comes to the types of property performing best, good-quality family homes in popular school catchment areas continue to attract the strongest demand, with areas such as Corstorphine frequently mentioned as standouts. Properties that are well-presented and ready to move into are selling quickly, while those needing significant work tend to linger. In addition, commutable locations such as Musselburgh and nearby East Lothian towns are seeing strong interest from buyers seeking space, gardens, and value compared with central Edinburgh.

First-time buyers: Driving market activity

The first-time buyer sector was highlighted as particularly strong in Q3. Many of these buyers are supported by help from parents to cover deposits, which has helped sustain activity despite cost-of-living pressures. Flats in areas such as Marchmont, Morningside and Bruntsfield continue to sell well when in good condition, often attracting healthy premiums. With mortgage rates stabilising and affordability improving slightly, many buyers are finding that repayments are manageable and are taking advantage of a calmer, less competitive market than in recent years.

Transactions and chains: Managing fall-throughs

The panel also discussed a small but notable increase in sales falling through. The fall-through rate has risen to around 10%, up from 7.4% last year, largely because of longer property chains and the growing number of offers that are “subject to sale.” However, Scotland still fares far better than England and Wales, where around one in three transactions fail to complete. Clear communication, experienced chain management, and proactive solicitor involvement remain crucial to keeping transactions on track.

Seller education: Managing expectations in a calmer market

The days of every property selling at a closing date and for well above the valuation are over, with the current average sale price sitting at 102.4% of Home Report value. Sellers now need to focus on presentation, pricing, and readiness to move rather than assuming competitive bidding will drive prices upward. Buyers are also far more informed, often spending weeks reviewing online photos, floorplans, and virtual tours before arranging viewings, meaning serious interest has replaced the once-familiar queues of casual viewers.

Outlook: From Christmas to the New Year and beyond

Looking ahead, the consensus was that sellers who are ready should not delay until after Christmas. Although activity typically dips briefly over the festive season, there remains a core of motivated buyers throughout November and December, often those who have missed out earlier in the year. The panel expects a familiar “New Year bounce” in early 2026, supported by ongoing demand and Edinburgh’s market resilience. While some uncertainty remains around taxation and policy, most agents anticipate a steady, positive year ahead, with calls for further regulation of estate agents and possible reforms to stamp duty thresholds for first-time buyers.