Edinburgh Property Market Update – January 2026

Expert Insight from 

Sean McMahon

The latest Zoopla House Price Index confirms what many buyers and sellers across Edinburgh and the wider EH postcode area are already starting to feel: confidence is returning to the housing market.

After a hesitant end to 2025, buyer activity has picked up as mortgage rates ease and uncertainty following the Autumn Budget fades. While national headlines provide useful context, the real story — and the real opportunities — lie in understanding how these trends play out locally. That’s where experience, data and market knowledge come together.

With over 35 years’ experience across estate agency sales, lettings, property management, financial services and property marketing, Sean McMahon brings a rare, end-to-end understanding of the property market. It’s this breadth of experience that allows clients to make confident, informed decisions — and why transparency and trust sit at the heart of every instruction.

Buyer Confidence Returns — But This Is Not 2025 All Over Again

Buyer demand has rebounded in early 2026, broadly tracking in line with early 2024 levels. This follows a quieter end to last year, when many households delayed decisions amid wider economic uncertainty.

However, demand remains around 9% lower than the unusually strong start to 2025, when buyers rushed to beat stamp duty changes. In practical terms, this means the market has stabilised — not overheated — creating healthier conditions for both buyers and sellers.

Mortgage rates are playing a key role. The average five-year fixed rate at 75% LTV has fallen to around 4%, its lowest level since 2022. This psychological threshold matters. It’s bringing first-time buyers and home movers back into the market, particularly those who were priced out or cautious 12 months ago.

More Homes for Sale Means Strategy Matters More Than Ever

One of the biggest shifts since last year is supply. There are now 6% more homes for sale nationally, with agents marketing the highest number of properties seen in eight years.

For buyers, this means more choice.

For sellers, it means pricing, presentation and marketing are critical.

This is where local expertise becomes invaluable. National averages don’t sell homes — accurate pricing rooted in local demand does. Whether that means defending value in strong Edinburgh neighbourhoods or adjusting expectations in more competitive pockets, success in 2026 will come down to informed, proactive decision-making.

House Prices: The National Picture vs Local Reality

Across the UK, house prices rose by 1.2% over the last year, taking the average price to £269,800. Growth has been strongest in more affordable areas, including Scotland, while southern regions have seen flatter or slightly negative movement.

Flats and maisonettes have been the weakest performing property type nationally, while houses — particularly semi-detached and terraced homes — have shown more resilience.

But averages only tell part of the story.

In Edinburgh, and especially across popular first-time-buyer locations such as EH6, performance continues to outpace the national picture:

• EH6 average house price: £253,800

• Year-on-year growth: 1.9%

• Average first-time-buyer price: £190,000

• Average time on market: 25 days

Compared with a national average of around 40 days on market, this highlights just how important postcode-level insight is when setting an asking price or planning a launch strategy.

What This Means for Buyers and Sellers in 2026

For buyers, 2026 offers better choice, improved affordability and a more balanced negotiating environment.

For sellers, the message is clear: homes that are well priced, well presented and professionally marketed are still selling strongly — while those that miss the mark risk blending into the background.

This is where Sean McMahon’s experience across sales, lettings, finance and marketing provides a genuine edge. Understanding buyer psychology, funding constraints, presentation standards and digital visibility isn’t optional anymore — it’s the winning formula.

Buyers also have access to Sean's off-market database highlighting where properties could soon be available. Access this valuable online tool here.

Final Thoughts from Sean McMahon

“The market is healthier than it’s been for some time, but it’s also more nuanced. National headlines don’t sell homes — local knowledge does. Clients want clarity, honesty and strategy, not guesswork. That’s what 35 years in this industry gives you.”

Feel free to call The Property Experts on 0131 510 0215 or send Sean a message via WhatsApp on 07304 058 040.