Strong Sales Growth Across Scotland and Locally

The Scottish residential property market continues to show resilience and growth into 2025. Registers of Scotland data confirms that there were 28,099 residential property sales registered across Scotland in Q4 2024, marking an 11.5% annual increase — the third consecutive quarter of positive growth and the highest rate recorded since Q3 2021.

Throughout 2024, there were 98,674 transactions, up 5.4% on 2023 figures. While still 15.8% below the exceptionally high levels of 2021 (post-Covid recovery and temporary LBTT reductions), this figure remains 5.7% higher than the post-financial-crisis average (2010–2024).

Favourable factors, including the softening of mortgage interest rates, helped stimulate activity, with many buyers returning to the market after a cautious 2023.

Local Highlights: Fife and Dundee

• Fife recorded an 8.2% increase in quarterly transactions in Q4 2024 and a 4.0% rise across the past year.
• Dundee City performed even more strongly, seeing a 13.7% quarterly increase and a 10.0% annual increase.

This strong local performance reflects the enduring appeal of these areas, particularly for families, first-time buyers, and professionals seeking good value.

Popular property types demand has been strongest for terraced houses and semi-detached properties, offering space and affordability. Flats continue to perform well in urban locations like Dundee, popular among first-time buyers and investors, though house types have generally seen faster growth.

Lettings Market: Cooling Growth but Sustained Demand

In the lettings market, Scotland has seen a noticeable slowdown in rental inflation for newly let properties:

• According to Citylets, annual rental growth fell from 13.7% in Q3 2023 to 6.2% by Q4 2024.
• Rightmove data mirrored this, with growth dropping from 14.5% to 4.7% in the same period.
• Zoopla’s more recent January 2025 figures suggest rental growth now sits at 3.1%, down from 5.8% in October 2024.

These figures relate specifically to new lets and are unaffected by previous rent cap restrictions introduced under the Cost of Living (Tenants Protection) (Scotland) Act 2022, which applied to existing tenancies.

Despite slower rental growth, demand for quality rental properties remains strong in Fife and Dundee, particularly for well-maintained family homes and modern city apartments.

Both the sales and lettings markets in Fife and Dundee remain active and healthy. While rental growth has cooled compared to the peaks of 2023, sustained tenant demand continues to offer strong opportunities for landlords. On the sales side, a more favourable borrowing environment and robust buyer confidence are fuelling steady growth, with terraced houses and family homes remaining the most sought-after property types.

If you are considering selling, buying, letting, or investing in property, now is a good time to explore your options. Our team at brikk is here to provide honest advice, local expertise, and full support throughout the process.

Contact us today for a no-obligation chat about how we can help you.

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