House prices in Orkney have surged by nearly 64% over the last five years, marking the highest increase of any council area in Scotland, according to the latest figures from the UK House Price Index.
The average property price in the islands rose from £131,476 in March 2020 to a provisional £215,580 in March 2025 – a 63.9% increase. This growth significantly outpaces the Scottish national average, which saw a 22.4% increase during the same period.
By comparison, the average house price across Scotland climbed from £151,856 to £186,000, while the UK average rose more modestly, with Scotland’s 4.8% increase in May alone nearly doubling the national average, according to the Halifax House Price Index.
Post-Pandemic Boom
Although Orkney’s property market saw a dip during the initial months of the pandemic, prices began to climb sharply by mid-2021. For four consecutive months between April and July 2021, prices rose by over 30% month-on-month. A similar trend followed in 2022, with consistent gains of over 20% during the same period.
While the market cooled slightly between April 2023 and January 2024 – registering monthly declines under 11% – growth resumed last spring. By January 2025, Orkney house prices were rising again at a rate of 14.3%, before easing to 11.8% in March.
Mainland and Island Comparisons
The only other areas to come close to Orkney’s growth were Midlothian, which saw a 48% increase, and Glasgow, where prices rose by 38%. Among Scotland’s other island authorities, Na h-Eileanan Siar posted a 36.2% rise, and Shetland grew by 26.1%.
Despite the rapid growth, Orkney does not top the table in terms of absolute average house prices. East Renfrewshire holds that position with an average property price of £295,545, followed by Shetland at £229,663.
Resilient Demand in Rural and Island Areas
Analysts point to a growing trend in demand for homes in scenic and rural settings – especially post-pandemic – as people seek more space and flexibility in how and where they live.
With strong price resilience and double-digit growth continuing into 2025, Orkney’s housing market appears to be one of the most dynamic in the UK, attracting attention from both buyers and investors looking for long-term value in Scotland’s islands.
