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New-Build Homes in Scotland: Promise, Pressure, and What’s Next for 2025
Scotland’s property market has proven remarkably resilient in recent years but one corner of it is now under the spotlight: new-build homes. With affordability, supply, and energy efficiency all part of the conversation, 2025 has shaped up to be an important year for anyone thinking about buying, selling, or investing in this part of the market.
Let’s unpack what’s happened and happening across Scotland and especially around the Central Belt to see where things might be heading next.
The State of Play: New-Builds Slowing Down
While overall house prices across Scotland rose around 5–6% over the past year, the new-build sector has shown signs of slowing. According to Registers of Scotland, new-build transactions made up just 9% of all sales in 2024–25, and the total market value for new-builds actually fell by about 4%, despite modest increases in average prices.
In other words: homes are still selling, but fewer are being built and sold.
There are a few reasons for this. Rising construction costs, planning delays, and tighter funding have all made it harder for developers to keep up supply. At the same time, demand hasn’t disappeared particularly for energy-efficient homes that help keep running costs down. The result? More competition for fewer properties, and continued upward pressure on prices for certain types of new-builds.
Why Buyers Still Love New-Builds
Despite the dip in supply, new-builds remain high on buyers’ wish lists. Here’s why:
- Energy Efficiency: With energy bills still biting, EPC ratings have become more than a box-ticking exercise. New-builds typically outperform older homes, offering better insulation and lower running costs.
- Low Maintenance: Move-in ready homes are appealing to busy professionals and families who don’t want renovation projects.
- Modern Layouts: Open-plan living, home-office space, and generous storage continue to match what buyers are looking for post-pandemic.
- Incentives: Many developers continue to offer schemes such as part-exchange or help with deposit contributions giving new-builds a financial edge.
The Central Belt: A Tale of Two Cities
Zooming in on Scotland’s Central Belt particularly Edinburgh and Glasgow paints a mixed picture.
Edinburgh: Premium Pricing Meets Planning Pressure
The capital continues to command premium prices, with the average home now well over £330,000. For new-builds, the figure can be significantly higher, particularly in sought-after developments near the city centre or along commuter routes like Midlothian and East Lothian.
But supply is constrained. Planning regulations and limited land availability have slowed down new projects, keeping pressure on both prices and demand. As a result, buyers are increasingly looking outward to areas like Livingston, Dunfermline, and East Calder, where new developments are offering better value and modern specifications.
Glasgow: Value, Volume, and Regeneration
Glasgow’s market, by contrast, is showing more volume and variety. Average prices remain lower than Edinburgh, at around £180,000–£200,000, which gives developers more breathing room to deliver affordable schemes. The southside, Clyde Gateway, and East End regeneration zones are all seeing new-build activity tied to long-term city improvement plans.
First-time buyers and investors continue to find opportunities here, especially in developments near major transport links and universities. However, even in Glasgow, the pace of completions has slowed — mirroring the national trend.
Beyond the Cities: Suburbs and Small Towns on the Rise
The move towards hybrid working has changed what “location” means for many Scots. Buyers who only commute part-time are more willing to look beyond the city to commuter towns with easy access to amenities, countryside, or even a golf course or coastal path.
Areas like Stirling, Falkirk, East Lothian, and Fife are benefiting from this trend, offering newer housing stock at more accessible prices. Many of these homes also meet higher energy standards, which makes them especially attractive for families thinking long-term.
Challenges for Developers and Policymakers
While the demand is there, the supply side faces real challenges:
- Rising Build Costs: Labour and materials remain expensive, putting pressure on margins.
- Planning & Regulation: Local planning processes can take years, delaying delivery and adding uncertainty for developers.
- Environmental Standards: New energy efficiency requirements are positive overall, but they do add upfront costs that can make some projects less viable.
Some in the industry are calling for clearer planning frameworks and government incentives to support sustainable development especially smaller or mid-sized builders who don’t have the capital buffers of major housebuilders.
What This Means for Buyers and Sellers
For buyers, the message is simple: if you’re eyeing a new-build, act early and compare carefully. The best plots and incentive packages tend to go quickly, especially in commuter-friendly areas. And remember that resale values for modern, energy-efficient homes are likely to stay strong as sustainability becomes a bigger part of the housing conversation.
For sellers, particularly those with relatively new homes built within the last 5–10 years, this moment presents an opportunity. Your property could appeal to buyers priced out of brand-new builds but still seeking that low-maintenance lifestyle.
For investors and landlords, new-builds remain attractive long-term assets though current rental policy changes and cost pressures mean you’ll want to model yields conservatively and keep an eye on legislative shifts.
Looking Ahead: Opportunity Amid the Slowdown
While the slowdown in new-build activity might sound like bad news, it also creates opportunity. With fewer homes being delivered, well-located and energy-efficient properties are likely to hold their value even in a cooling wider market.
In short, the next year for Scotland’s property scene may not be about boom and bust, but about balance: matching the homes we build to the lifestyles buyers are actually living. And if the market can get that right particularly across the Central Belt the long-term outlook remains bright.
If you’re considering a move in 2025 whether to buy, sell, or invest understanding where the new-build market is heading can help you make a confident, informed decision. Scotland’s story may be changing, but opportunity still lies at the heart of it.
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Why using a good letting agent isn't just smart - It's Essential!
In recent days, media attention turned to the case of Rachel Reeves, the UK Chancellor, who admitted to renting out her property without obtaining the required licence. While the incident may feel distant from the Scottish lettings market, it highlights a universal truth: letting a property isn’t simply about handing over the keys. Compliance, expertise and value all hinge on working with a qualified and proactive lettings agent.
The Reality of Lettings: Compliance is More Than a Form
From licensing to safety obligations, the regulatory environment for landlords has grown more complex. In the case above, the missing “selective licence” triggered headlines and reputational risk. *2
For landlords in Scotland, this is a timely reminder that items such as landlord registration, deposit protection, gas and electricity safety certificates, EPC compliance and local licensing (where applicable) aren’t optional.
A good lettings agent acts as both advisor and gate-keeper—ensuring you’re beyond the line of regulation and minimising the risk of costly mistakes.
Why the Right Agent Adds Real Value
When a property is managed well, both landlord and tenant benefit—and the business case becomes clearer. Here’s what a strong lettings partnership can deliver:
- Full regulatory cover: Ensuring everything from HMO licensing (if applicable), deposit protection, to smoke & carbon monoxide alarms is in order.
- Tenant quality and stability: Experienced agents screen tenants effectively, reducing voids and income disruption.
- Maximised yield and value: Through tailored marketing, accurate pricing and proactive maintenance, an agent helps retain premium status and protect asset value.
- Risk mitigation and reputation management: Poor compliance or tenant vetting can lead to enforcement, penalties or damage to your brand something the recent case made plain.
- Strategic flexibility: Whether you’re looking to let long term, convert to short term, or even exit the asset, a trusted agent plans with you not just for you.
What the Recent Incident Teaches Us
The Chancellor’s case isn’t just political drama it’s a real world example of the pitfalls in letting:
- Relying on a third-party (in her case, a letting agency) without confirming the full regulatory picture caused the error. *3
- A single oversight (licencing) became high-profile, undermining confidence.
- Prompt action helped, but the reputational cost remains.
For you as an investor or landlord, this means the choice of agent isn’t “nice to have” it’s a business-critical decision.
The Bottom Line
If you’re letting a property (or considering doing so), your agent must be more than a checkbox: they should be your partner, your adviser and your peace of mind. The right agent helps you meet your obligations, protect your property and maximise your returns. The wrong one? Risk, cost and stress.
Want to talk through how we do things differently ensuring compliance, performance and confidence in the Scottish rental market? Get in touch today.
Referencing key: -
*1 The Guardian+2Financial Times+2
*3 The Guardian
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The Future of Renting in Scotland: Tackling the Supply Crisis Together
Scottish Letting Day 2025 once again brought together the sector’s most passionate voices — landlords, agents, policymakers, and investors to discuss the future of housing in Scotland.
This year, our team at Logan Property had the privilege of contributing to that conversation. Managing Director/CXO, John Logan and Head of Business Development, Natalie Simpson took to the stage to deliver our session: “The Future of Renting in Scotland: Tackling the Supply Crisis Together.”
We were delighted to see such a strong turnout and a lively Q&A afterwards proof, if ever it were needed, that this is a debate that matters deeply to everyone in the room.
And yes, our Stand (No. 1!) was buzzing all day. From the “Wheel of Fortune” to our prize draw, it was fantastic to see so many delegates and exhibitors stop by for conversation, collaboration, and a bit of fun.
A Market Under Pressure
Our message was clear: Scotland’s rental and general property market is at a crossroads.
Demand for homes has surged, yet supply continues to shrink. In key cities like Edinburgh and Glasgow, more than 20 people are competing for every available rental property and in our own recent experience, over 60. Not a nice tenant experience.
Rents are climbing, affordability is tightening, and landlords feeling the squeeze of rising costs and regulatory pressures — are increasingly exiting the sector.
This isn’t just a numbers problem; it’s a people problem. Every property lost from the private rented sector represents a home that no longer exists for someone who needs it.
The Role of the Small Landlord
John reminded delegates that independent landlords still provide the majority of Scotland’s rental homes.
These are individuals and families who have invested locally, often managing just one or two properties. Yet, the data tells a worrying story:
- Small landlords (with one property) have fallen from 94% to 72% of registrations since 2019.
- SAL’s 2024 survey suggests that over 52,000 homes have been lost from the sector in just two years.
- The top reasons? Hostility from politicians (79%), rising regulation (70%), and concern over rent controls (62%).
Protecting tenants is crucial but so is protecting the people who provide the homes. As John put it:
“When small landlords succeed, renters benefit.”
Build to Rent – A Modern Solution
Natalie then explored the Build to Rent (BTR) model as a key part of Scotland’s housing future.
BTR developments purpose-built, professionally managed, and designed for community living can deliver scale and quality quickly. However, the sector faces significant barriers:
- Policy uncertainty, especially around rent controls.
- Planning delays leaving 14,000+ homes stuck in the development pipeline.
- Rising build costs, labour shortages, and investor caution.
Despite this, there is optimism. With clearer policy, planning reform, and public-private collaboration, BTR could help reshape Scotland’s rental landscape creating more sustainable, tenant friendly homes.
Collaboration Over Confrontation
Our key message? We cannot solve this crisis by treating landlords, developers, and tenants as opposing sides.
Instead, we need shared responsibility and smart policy that supports affordability and viability.
That means:
- Consulting meaningfully with landlords and tenants.
- Encouraging innovation from tech platforms that improve transparency to local incentives for affordable lets.
- Supporting education and dialogue to build trust across the sector.
Because, as Natalie concluded:
“Housing isn’t just a market it’s the foundation for opportunity. We owe it to every renter in Scotland to get this right.”
Keeping the Conversation Going
Our talk clearly resonated. The BTR and Mid-Market Rent topics carried over into the main policy panel later in the day sparking lively debate among representatives from the major parties (with the exception of the Greens, who were a no show) and highlighting just how urgent these issues have become.
The takeaway? Everyone recognises the problem. Now we must come together to deliver the solution.
So, here’s our question to you and to the wider property community:
How do we build a rental market that truly works for everyone tenants, landlords, and investors alike?
We’d love to hear your thoughts. Join the conversation and help shape the future of renting in Scotland.
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Autumn Buzz: Landlord Focus Magazine and What’s Coming at Scottish Letting Day 2025
Autumn has arrived and with it, one of our favourite reads of the year: the Autumn issue of Landlord Focus Magazine!
This edition is packed full of great content for anyone involved in Scotland’s private rented sector — from helpful insights and updates to a bit of lighthearted fun. You’ll even find a Private Rented Sector facts and figures quiz to test how well you really know the market!
We’re delighted to have our advert on the back page of this issue, sitting alongside some really interesting articles and a handy guide to what’s in store at Scottish Letting Day 2025.
Speaking of which… it’s nearly here! Scottish Letting Day takes place next Tuesday, 21st October, and it’s always one of the highlights of the year for anyone working in the sector. We’ll be there both exhibiting and speaking, and we can’t wait to catch up with familiar faces (and meet some new ones too!).
It’s always such a great day for networking, sharing ideas, and finding out what’s next for the private rented sector in Scotland. If you’re heading along, make sure to pop by our stand and say hello — we’d love to chat.
In the meantime, grab yourself a copy of Landlord Focus Magazine and enjoy a good read with your coffee. It’s a great warm-up for what promises to be another fantastic Scottish Letting Day next week!
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In a fast-moving property market, first impressions count—more than ever. Today, buyers and tenants often make decisions before they even step foot inside a property. That’s why a hero shot the standout photo that captures the essence of your home—is so crucial. A professionally styled, well-lit image can instantly grab attention online, drive viewings, and set the tone for how your property is perceived.
But a great photograph is only part of the story. The way your home is presented, both in images and in person, can make a huge difference to its perceived value. This is where the “dress to sell” concept comes in. Just like staging a fashion shoot, your property benefits from thoughtful preparation and interior styling. Neutral tones, clutter-free spaces, and strategic décor choices allow buyers to envision themselves living there—and they’ll be willing to pay more for it.
“Small touches like fresh flowers, well-placed mirrors, or updating a tired kitchen handle can make a surprising difference,” says Natalie Simpson, Business Development Manager. “It’s about enhancing your home’s best features so it appeals to as many potential buyers as possible.”
Tips to Enhance Your Home Before Sale
- Declutter and depersonalise: Less is more when it comes to allowing buyers to imagine themselves in the space.
- Focus on key rooms: Living areas, kitchens, and master bedrooms have the most impact.
- Lighting matters: Bright, natural light makes rooms feel bigger and more welcoming.
- Small upgrades: Fresh coats of paint, modern handles, or stylish accessories can refresh a space inexpensively.
- Professional photography: Always invest in quality images your hero shot is often the first impression buyers will have.
Preparation doesn’t need to be overwhelming. With the right guidance, small changes can maximise your property’s appeal, attract more viewings, and ultimately help achieve a higher sale value.
Whether you’re selling, letting, or simply preparing your property for the market, having an expert by your side ensures that every detail counts.
👉 For more tips on preparing your home to sell or let, follow our LinkedIn and Instagram pages for advice straight from the front line of Scotland’s property market.














