Capital appreciation remains sluggish across all areas

Capital appreciation remains sluggish across all areas


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A series of reports suggest residential capital appreciation remaining poor across much of the country.

Research by online agency Yopa found that average rural house prices increased by 1.9% in the year to January 2026, ahead of the 1.6% national average and above the 1.5% growth recorded across towns and cities.

The average countryside home now costs £295,540, compared with £298,169 across urban markets and a national average of £297,453.

There were some exceptions – the strongest growth was recorded in the Forest of Dean, where average rural house prices climbed by 9.6% over the last year to £301,455.

Other strong-performing countryside markets included Northumberland, where prices rose 8.2%, and Newark and Sherwood, which saw growth of 7%.

Further hotspots included Bolsover, West Devon, Cumberland and Horsham, all of which recorded annual growth above 5%.

Meanwhile Scotland is seeing greater house price growth than England or Wales, but even so it’s annual capital appreciation is an a erase of just 1.9%.

An analysis of the latest statistics by a DJ Alexander Ltd – the largest lettings and estate agency in Scotland – shows that between March 2025 and February 2026 average house prices in Scotland increased from £183,152 to £186,684.

This was a 1.9% increase over the year and is higher than England and Wales where average prices fell by £1,742 which was a drop of -0.6% over the same period.

Across Scotland there were substantial variations in price rises with Inverclyde recording the highest increase of £11,422; East Dunbartonshire rose by £10,880; Moray up £10,303; Renfrewshire £10,138 higher; and South Ayrshire increasing by £9,727.

But at the other end of the scale five areas recorded price falls over the same period. 

In Aberdeen prices fell by £7,517; in East Lothian down £2,352; Highland dropped £2,044; Stirling dipped by £344; while Midlothian saw the smallest reduction of £196.

The most expensive place to buy a home in Scotland is Edinburgh with an average price of £294,990; followed by East Renfrewshire at £287,760; East Lothian on £277,947; Midlothian at £272,025; and East Dunbartonshire on £264,786.

David Alexander, the chief executive officer of DJ Alexander Scotland, comments: “The housing market is slowing in Scotland. The peak occurred in November 2025 when average prices reached £193,044 and have fallen back by £6,360 which is a drop of 3.3% in just a few months. 

“The figures show that this is occurring across the whole of the UK with England and Wales already seeing average prices lower than a year ago.”

“This is to be expected given the slower fall in interest rates, the cost-of-living crisis facing the UK economy at present, and rising levels of unemployment. 

“These numbers all cover the period prior to the invasion of Iran by President Trump so we can expect to see a further softening in the housing market when the anticipated higher costs from rising fuel prices start to filter through into the wider economy.”

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