Young People Being Priced Out Of Housing In Highland

8th January 2026

Average house prices in Highland reached £217,000 in October 2025 — up nearly £40,000 since 2020.

Meanwhile rents rose to £719 per month and this steady rise has made home ownership increasingly unaffordable for young people, especially in tourism-heavy and rural areas.

Rental Pressure
Average private rent in Highland rose to £716/month in October 2025 — a 5.2% annual increase, outpacing the Scottish average of 3.4%.

This means many young people are locked into rising rents, unable to save for deposits or compete with cash buyers.

Why It's Hitting Young People Hard
Tourism demand: Areas like Skye, Loch Ness, and the NC500 corridor attract buyers seeking short-term let income, pushing up prices.

Second homes & Airbnbs: Properties are often bought as investments, not homes — reducing supply for locals.

Wage mismatch: Local wages haven't kept pace with house price inflation, especially in hospitality and care sectors.

Planning constraints: Limited new builds in rural areas mean supply remains tight.

Consequences
Young couples priced out: Even modest homes now require deposits and incomes beyond reach.

Community hollowing: Schools, shops, and services struggle as permanent residents decline.

Political pressure: Councillors are increasingly backing Short Term Let Control Areas to slow the conversion of homes into holiday lets.

Housing prices in Highland from ONS