A town in Fife has been revealed as a surprise property hotspot despite house prices falling.
Buyers are paying a premium to snap up homes in Dunfermline, with strong demand for houses at the more affordable end of the market.
The city’s average property price dropped by 6.8% year on year, likely due to a large reduction in the sale of four-bedroom houses.
However, growth is being driven by a sharp rise in sales of smaller, cheaper two- and three-bedroom properties.
Dunfermline’s demand remains especially strong, with buyers paying one of the highest premiums, at 103.5% of the Home Report value on average.
House hunters are looking for affordable homes (Image: Yui Mok)
Dunfermline was also home to the cheapest property type on the market, according to the latest Edinburgh Solicitors Property Centre (ESPC) House Price Report, with one-bedroom flats selling for an average of £106,114, more than £50,000 cheaper than Edinburgh’s most affordable alternative.
Properties in the city are selling at an exceptionally fast rate, with homes going under offer in a median time of 13 days, one day faster than at the same time last year.
The latest ESPC report found that average selling prices increased by 2.7% over the past year across the regions it covers, reaching £296,298.
In East Fife, the average sale price rose by 5.4%, while East and West Lothian experienced substantial increases of 8.2% and 9.5% respectively, indicating rising interest in higher-priced properties.
Across the market, external factors such as geopolitical uncertainty and associated economic instability, including fluctuating mortgage rates, appear to be affecting the confidence of buyers and sellers, who may be adopting a “wait and see” approach.
Sales volumes dropped by 7% year on year, although May to July 2025 was an especially busy period, which may be skewing the figures, the report said.
Read More:
Paul Hilton, CEO of ESPC, said: “Last month’s report highlighted strong demand for premium properties, especially in East Lothian, and this month we can see a continuation of that pattern.
“For buyers in the middle ground of the market, it is no surprise to see a strong move towards locations such as Dunfermline, which offer the opportunity to purchase a long-term home at a much more affordable price.
“More broadly, we are continuing to see high levels of seller confidence, and buyers moving swiftly when the right property comes onto the market. Competition is less intense than we saw during the same period last year, but well-priced, well-presented homes continue to attract strong levels of interest and achieve healthy results.”
