Kirkcaldy recorded Scotland’s strongest house price growth in 2022, rising by +29% over the last 12 months up to November, according to the new data from Bank of Scotland.
The Fife town, which has historically offered very affordable housing compared to the Scottish national average, saw prices rise by £45,798 to £203,577, up from £157,779 in 2021.
Johnstone in Renfrewshire is next on the list, with house prices rising by +24.3%(£48,127) from £197,722 to £245,849 over the last year.
Back in Fife and Dunfermline also recorded strong growth, with the average property increasing in value by +19.1% (£36,394) over the last year, from £190,087 to £226,481.
Average house prices in Edinburgh have risen by +12.9% (£37,781) to £330,607. Moving west, Glasgow saw average house prices rise to £246,209 this year, an increase of +13.6% (£29,512) compared to 2021 (£216,696).
At the other end of the scale, Ayr and Inverurie were the only towns to see prices fall back during 2022, by -1.7% and -0.2% respectively.
Overall it has been a positive year for many homeowners in Scotland hoping to see the value of their property increase, with average house prices growing by +10.9% over the last 12 months.
The average Scottish home now costs £242,213, an increase of £23,814 (10.9%) on last year’s figure of £218,399.
However, as the increasing cost of living puts more pressure on household finances and rising interest rates impact mortgage affordability, there is expected to be more caution among both buyers and sellers – and therefore house prices are likely to fall next year.
Graham Blair, Mortgages Director, Bank of Scotland, said: “Scottish house prices have continued to rise over the last 12 months, with properties in almost every area now worth more than a year ago.
“During 2022 it’s not been 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.”