One of the key findings from this month’s data across England, Wales, Scotland and Northern Ireland is that, over the long term since 2005, Scotland is the only nation where average property price growth has consistently outpaced inflation, which has averaged around 2.85% per year over the same period.

Based on the latest ONS HPI release based on April 2026 data, the weaker performance elsewhere reflects not only the correction in many markets since 2022, but also the impact of higher mortgage rates on affordability and buyers’ borrowing power.

Although the Bank of England base rate has fallen from its peak, it currently remains at 3.75%, continuing to be constrained due to economic pressure caused mainly by the Iran/US war.

We need to see further reductions towards 3.0–3.25% for affordability to be improved enough to increase borrowing capacity and support a stronger recovery in housing prices.

However, even with the current economic issues, the market is still performing well as far as transactions are concerned, with transactions performing pretty well.

Indices commentary 

Zoopla

 – UK house prices are 1.5% higher than a year ago but this headline hides a market moving at very different speeds across the UK.
 – Across the North of England, Scotland and Wales prices are rising at 2% to 3.6%. These are more affordable markets where improved mortgage affordability has had the greatest impact on house prices.
 – Those in Scotland are seeking homes priced 8% higher than last year.

Halifax:

 – Northern Ireland continues to lead UK annual house price growth, driven by a limited supply of available properties, along with relative affordability compared to some other regions. Average prices are up +7.8% over the past year to £227,177, which is the highest rate of growth in the last six months.
 – Scotland also recorded strong annual growth, now at +3.8% with an average price of £222,650.
 – Wales has seen property price growth continue to slow, now +0.1% on annual basis, taking the typical home value to £230,355.

Focus on Scotland from Registers of Scotland

Commenting on the house price figures in Scotland, a Registers of Scotland spokesperson said:

“There was an increase of 2.8% (to £192,000) in the average house price for Scotland in the 12 months to April 2026. This compares to an increase of 3.8% (to £270,000) in average house prices for the UK as a whole.”

– The volume of residential sales in Scotland in February 2026 was 6,190.
– When compared with the first published figures for February 2025 this was an annual increase of 1.5%.

The table provides Scotland house prices and annual changes by property type, with terraced homes performing the best year on year with a rise of 4.7% versus a small change in flats/maisonettes of 1.5%, which reflects movements in the Midlands and North of England by property type.

Variations exist within Scotland

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

 – Increases were recorded in 26 out of 32 local authority areas, when comparing prices with the previous year. The largest increase was in Inverclyde where the average price increased by 12.2% to £116,000.
 – The largest decrease was recorded in City of Aberdeen, where the average price decreased by 5.6% to £130,000. 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.