Spring is always an exciting time in the property market, and 2025 is shaping up to be no exception. Since the start of the year, we’ve seen a noticeable uptick in both buyer and seller activity, with more people eager to make a move.
At Coulters, we’ve been particularly busy with new valuation appointments and getting some fabulous properties live. Whilst we definitely experienced more flats selling at the start of the year, we are now seeing more houses coming onto the market. This is most likely a result of the shift in season bringing gardens into bloom, along with the better weather which makes exterior shots appeal more to prospective buyers.
We have also seen an increase in closing dates, with competitive offers coming in on a regular basis. While the seasonal boost is something we expect each year, this spring feels even more dynamic, largely thanks to 3 consecutive interest rate drops, making mortgages more accessible and giving buyers the confidence to commit. The latest reduction, which occurred in February 2025, reduced them from 4.75% to 4.5%, marking the lowest rates we have seen in 18 months. This reduction benefits those on variable or tracker mortgages and, crucially, gives first-time buyers a much-needed boost. With further reductions on the horizon (some experts suggest another 3 by the end of 2025), we expect this momentum to continue throughout the year.
In Edinburgh, we’re seeing particularly strong demand for family homes in sought-after areas like Morningside and Bruntsfield—especially those within desirable school catchments. Traditional flats, which moved more slowly over the winter, are now selling more quickly, and entry-level flats remain highly competitive, especially amongst first time buyers. A snapshot from the ESPC Price Report reveals that in March 2025, properties in Edinburgh City Centre and North Edinburgh “recorded double figure increases in the average selling price, with rises of 14.7% and 11.1% retrospectively.” This surge in activity reflects growing buyer confidence and highlights the continued appeal of Edinburgh’s vibrant and competitive property market.
Meanwhile, East Lothian is experiencing its own surge in demand. With its stunning coastline, great schools, and easy commute to Edinburgh, it’s no wonder buyers flock to areas like North Berwick, Gullane, and Dunbar in time for summer and before the start of a new school year. Many buyers are making the move to gain more space and a better quality of life without sacrificing connectivity to the city. We’re also seeing strong interest in new-build developments, which are proving popular with those priced out of Edinburgh’s central market. According to the March 2025 ESPC Price Report, East Lothian saw a 17.2% year-on-year increase in average selling prices, underscoring the region’s growing popularity and robust market activity.
However, certain property types, like second-hand new builds, are facing challenges. In both Edinburgh and the Lothians, nearby availability of brand-new developments, with attractive incentives and the ability for buyers to personalise their homes, can make it harder for second-hand properties of a similar type to compete. While second-hand new builds may take longer to sell, they appeal to buyers who value the stability and maturity of an established development. Sellers in this situation shouldn’t be discouraged, as finding the right buyer may simply require a bit more time.
With competition increasing in spring, this is pushing offers up, often 6-8% over Home Report value, and we’re seeing an increasing number of closing dates being set. So far, in February and March, Coulters’ average percentage over Home Report (achieved on properties sold at a closing date) is 8.4%, and the range of offers being accepted is between 3-12%. When it comes to the negotiation and closing dates, it’s important to remember that that the highest offer isn’t necessarily the best. A buyer who is chain-free or already under offer often brings more certainty than someone offering a higher price but with a complex set of conditions (such as an offer that’s subject to the sale of another property).
Last year, the market didn’t follow the usual patterns due to shifting interest rates, meaning some properties stayed on the market for longer. Looking beyond the spring market, we anticipate it to remain relatively stable for the remainder of 2025. Continued interest rate reductions should help sustain demand, particularly among first-time buyers and those looking to remortgage. However, the increase in Additional Dwelling Supplement (ADS) for second-home buyers could have an impact, particularly on the buy-to-let sector.
If you are planning to buy or sell this year, but are going to miss the busy spring market, summer can offer great opportunities too. The pace of the market may slow slightly, which means that buyers who have struggled with competition might find a bit more breathing room. For sellers, a quieter market can work in their favour—fewer listings mean less competition, and serious buyers remain active.
