Scottish house prices continued to outperform the wider UK market in March despite signs of cooling momentum as higher mortgage rates and economic uncertainty weighed on buyer activity.
Latest data from HM Land Registry’s UK House Price Index Scotland showed the average property price in Scotland rose by 1.6% annually to £187,000 in the 12 months to March 2026. HM Land Registry UK House Price Index Scotland March 2026
While growth slowed from the revised 2.5% annual increase recorded in February, Scotland continued to outperform the wider UK market where annual house price inflation remained flat at 0.0%.
On a monthly basis, Scottish house prices dipped by 0.2% between February and March, reflecting wider signs of caution emerging across the UK housing market as mortgage affordability pressures persist.
NORTH-SOUTH DIVIDE
However, transaction activity in Scotland remains relatively resilient compared to the wider UK.
HM Land Registry said provisional transaction volumes for January 2026 were 1.9% higher than the same period a year earlier, while UK-wide transaction volumes fell by 2.4%. HM Land Registry UK House Price Index Scotland March 2026
The figures reinforce the growing regional divergence currently shaping the UK housing market, with Scotland and northern regions generally proving more resilient than southern England where affordability pressures are significantly higher.
Semi-detached homes recorded the strongest annual growth in Scotland, rising 4.4% to an average value of £215,000.
But flats and maisonettes remained weaker, with average prices falling by 1.4% year-on-year to £131,000 – reflecting softer demand for smaller urban properties and ongoing affordability sensitivity among first-time buyers.
At a local authority level, Inverclyde recorded the strongest annual house price growth in Scotland at 11%, with average prices reaching £113,000.
Meanwhile, Angus and East Lothian recorded the weakest performance, both seeing annual price declines of 1.8%.
The latest figures come as lenders continue to monitor affordability conditions closely following recent volatility in swap rates and renewed uncertainty linked to inflation and global economic tensions.
DESIRABLE PLACE TO LIVE
Mary-Lou Press, NAEA Propertymark President, said: “While UK house price growth has remained steady overall, Scottish homeowners have benefitted from house price growth year on year.
“For those in Scotland who are hoping to sell their property during the traditionally busier spring and summer months, this will enable them to use potential additional equity on their current property within their next transaction.
“Today’s news also demonstrates that Scotland is proving an increasingly desirable place to live due to steady house price growth and attractive working from home opportunities.”
