Compared to the previous month, house prices in Scotland increased by 1.2% on a non-seasonally adjusted basis, whilst on a seasonally adjusted basis there was no change.

The UK average house price was £273,000 which was an annual increase of 1.4% on July 2025. Compared with the previous month, UK house prices increased by 0.7% on a non-seasonally adjusted basis and decreased by 0.2% on a seasonally adjusted basis.

The volume of residential sales in Scotland in May 2026 was 8,469. When compared with the first published figures for May 2025 this was an annual decrease of 4.2%. Published transactions for recent months will increase as later registered transactions are incorporated into the index.

Increases were recorded in 25 out of 32 local authority areas, when comparing prices with the previous year.

The largest percentage increase was in South Ayrshire, where the average price increased by 8.5% to £172,000.

The largest percentage decrease was recorded in City of Aberdeen, where the average price decreased by 8.7% to £131,000.

Average prices for local authorities are based on a 3-month moving average to help remove some of the volatility in the series.

Orkney Islands, Na h-Eileanan Siar and Shetland Islands are not considered when highlighting which local authorities have experienced the highest/lowest increase, due to the very low numbers of sales transactions in these local authorities which can lead to volatility in the series.

Commenting on the house price figures in Scotland, a Registers of Scotland spokesperson said: “There was an increase of 2.3% (to £196,000) in the average house price for Scotland in the 12 months to July 2026. This compares to an increase of 1.4% (to £273,000) in average house prices for the UK as a whole.”

Jennifer Lewis, senior analyst for Real Estate and Construction at RSM UK, added: “Viability and affordability continue to be the key factors affecting the housing market. While the Scottish figures are slightly more favourable than the UK-wide picture, economic conditions continue to weigh on growth. Rising mortgage rates have driven below-average approvals, as rising bond rates fuel concerns over the UK fiscal position.

“With (this week’s) inflation figures adding pressure on the Bank of England to increase interest rates, the sector could see demand take a further hit in the coming months.

“The ever-increasing cost of building a home, paired with stagnant house prices, is placing the viability of developments at risk. (These) figures show that there is resilience in the Scottish housing market, but the challenge now will lie in maintaining a trajectory of growth and stimulating demand amid sustained economic challenges.