Fife in demand
Kirkcaldy tops locations for rising price of homes
Kirkcaldy, Johnstone and Dunfermline have seen the strongest growth in Scottish house prices this year as home buyers looked for greater value outside the big cities.
Latest figures released by Bank of Scotland show average prices for a home in Kirkcaldy jumped by 29%, or £45,798, to £203,577.
Known as the Lang Toun (Long Town) it now incorporates a number of once separate surrounding communities like Dysart and Pathhead and has a main street that measures over four miles in length.
Johnstone saw a 25% (£48,127) rise to £245,849, while prices in Dunfermline rose by 19% (£36,394) to £226,481.
The closest rise south of the border was the 23.% rise in York.
At the other end of the scale, Ayr and Inverurie were the only Scottish towns to see prices fall back during 2022, by -1.7% and -0.2% respectively.
In Edinburgh, average house prices have risen by 12.9% (£37,781) to £330,607. In Glasgow prices rose to £246,209, an increase of 13.6% (£29,512).
Overall, the average house price in Scotland rose by almost 11% over the 12 months up to November.
The average Scottish home now costs £242,213 – up by £23,814 compared to a year ago, although prices have been falling back across the UK in the latter months of the year as cost of living pressures have subdued demand.
According to Nationwide, house prices across the UK fell for the fourth consecutive month in December, the worst run since 2008 on a monthly basis, falling 0.1% compared with November.
In annual terms, house price growth slowed to 2.8% in December from 4.4% in November, Nationwide said.
Graham Blair, mortgages director at Bank of Scotland, said: “During 2022, it wasn’t big cities leading the way. Unsurprisingly, Edinburgh remains the most expensive place to buy, but its rate of property price inflation was outstripped by a number of locations nearby.
“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, likewise towns in both West and East Lothian.
“Looking ahead to 2023 and house price growth is expected to slow in Scotland. However, it’s important to remember that this follows more than two years of rapid growth.
“A period of adjustment was always likely, particularly given the current economic environment.”