House prices in Kirkcaldy rose almost three times the national average this year according to a new Bank of Scotland report.
The Lang Toun saw average prices jump by 29% – the largest percentage increase in Scotland.
And it wasn’t the only Fife location to be included in the Scottish property price top 10.
Dunfermline prices rose by 19.1% in the last year, putting it third on the list behind Johnstone in Renfrewshire.
The report shows that house prices across the country jumped by an average of £23,814 in the 12 months to November, a yearly increase of 10.9%.
The average Scottish home now costs £242,213.
Kirkcaldy prices rose from £157,779 in 2021 to £203,577. Dunfermline’s average house price is now £226,481.
It also wasn’t good news for every Fife location – growth in Glenrothes was weaker than most other locations. It saw an average price rise of 7.7% to £166,466.
Why are Kirkcaldy house prices increasing?
Local estate agent Jim Parker of Fife Properties is surprised Kirkcaldy and Dunfermline have ranked so highly.
His theory is that it is down to the amount of new build developments in these areas.
He said: “They are two areas with a high volume of properties coming onto the market. I think it is due to the number of new builds skewing the average.
“Glenrothes being one of the poorer performers also surprises me as it’s an area with high rental demand.
“Fife is very affordable compared to the rest of Scotland. It is also easy to commute to Fife from Edinburgh or Dundee, making it an attractive place to buy property.”
Dundee and Perth house price rise below average
House prices in Edinburgh (+12.9%) and Glasgow (+13.6%) also rose.
However, prices in Dundee and Perth did not keep pace with the national average.
Dundee saw the sixth lowest growth on the list, with an increase of 6.4% to £205,869.
Meanwhile Perth prices were up by 9.8% to £244,246.
At the other end of the scale, Ayr, South Ayrshire, and Inverurie, Aberdeenshire were the only towns to see prices fall back during 2022, by 1.7% and 0.2% respectively.
Growth to slow in 2023
Graham Blair, mortgages director, Bank of Scotland, said house price growth was expected to slow in Scotland in 2023.
He said: “Scottish house prices have continued to rise over the last 12 months, but during 2022 it’s not been big cities leading the way.
“This is partly due to pandemic-driven shifts in housing preferences as buyers sought bigger properties further from major urban centres.
“We can see this clearly in commuter towns across Scotland, but Fife has been a notable hotspot, with both Kirkcaldy and Dunfermline recording strong house price growth.”
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