East Lothian was the standout performer, where heightened demand for spacious family homes in coastal towns such as North Berwick and Dunbar drove a significant 17.2% annual increase in average selling prices to £328,016. The property hotspot of Dunfermline also experienced remarkable growth, with prices climbing 13.9% to £242,462, fuelled by strong demand for four-bedroom houses. More modest but solid gains were recorded in West Lothian (up 9.2%), West Fife & Kinross (up 3.4%), and Edinburgh, where the city’s average price rose 3.3% to £315,847.

However, not all areas saw growth. The Scottish Borders became the region’s most affordable location, with its average price declining 9.0% to £219,592. East Fife also saw a 4.8% drop to £282,628.

Market stability was a key feature of the quarter. Buyers paid an average of 102.4% of the Home Report valuation to secure a property, a slight increase on last year, indicating sustained competition. The median time to sell remained unchanged at a swift 22 days. Homes in West Fife & Kinross were the quickest to go under offer, taking just 15 days, while properties in Bonnyrigg were the fastest-selling type, being secured in only nine days.

A key market dynamic was the 8.0% rise in property sales volumes, which occurred despite a 5.1% drop in new listings. This suggests strong buyer demand and increased competition for available properties. East Lothian saw a remarkable 44.0% annual surge in transactions, with towns like Dunbar and Tranent recording exceptional growth. In Edinburgh, areas east of the city centre such as Abbeyhill and Easter Road proved popular, particularly for first-time buyers.

ESPC CEO Paul Hilton said: “With more than 83% of homes marketed at ‘offers over’ and buyers continuing to pay an average of 102.4% of Home Report valuation, the balance of conditions demonstrates confidence on both sides of the market.

“Sellers are benefitting from strong demand, while buyers continue to enjoy a wide variety of choice across different property types and locations.

“Looking ahead to autumn, the combination of healthy price growth, competitive selling times and robust sales activity suggests a stable and confident property market across the region.”