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.
While the seasonal boost is something we expect each year, this spring feels even more dynamic, largely thanks to three 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 three 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, the Lothians are experiencing their own surge in demand. East Lothian in particular, with its stunning coastline, great schools, and easy commute to Edinburgh. We have seen a heightened interest in areas like North Berwick, Gullane, and Dunbar, with many looking to move in time for summer and the start of a new school year. 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. Those moving to the Lothians from the city are typically looking for more space and the peace of a coastal or country lifestyle whilst remaining a short train or drive from Edinburgh.
In both Edinburgh and the Lothians, the nearby availability of brand-new developments, with attractive incentives and the ability for buyers to personalise their homes, is making it slightly more difficult for second-hand properties of a similar type to compete. However, sellers in this situation shouldn’t be discouraged, as this property type does appeal to buyers who value the stability and maturity of an established development, and therefore 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%. We have also seen an increase in closing dates, with competitive offers coming in on a regular basis. One thing our team emphasises to clients is that when it comes to the negotiation process during a busy time in the market, it is 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). That is why having an experienced sales team to advise you can be so beneficial, as they will be able to weigh up all of the individual circumstances and explain why a certain offer might be the best fit.
Looking beyond spring, we anticipate that the property market will remain relatively stable for the remainder of 2025, with the seasonal shifts occurring as expected. Continued interest rate reductions should help sustain demand, particularly among first-time buyers and those looking to remortgage. We do expect the increase in Additional Dwelling Supplement (ADS) for second-home buyers to have an impact, particularly on the buy-to-let sector, but overall there is still a good pool of buyers out there. 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.
