THE average selling prices for homes in Dunfermline has risen by nearly four per cent compared to the same time last year.

According to the latest ESPC report, the average house in Dunfermline sold for £158,679 between December 2016 and February 2017, compared to £152,726 in the same period the year before, a rise of 3.9 per cent.

The demand for one- and two-bedroom flats has now been outstripped by three-bedroom homes, potentially making it easier for first-time buyers to get on the property market, according to the latest analysis from ESPC, the leading property experts in east central Scotland.

Three-bedroom houses in the Blackhall, Corstorphine and South Queensferry areas are showing the largest year-on-year increases in average selling prices between December 2016 and February 2017.

Corstorphine has seen a 16.8 per cent increase in average selling prices, Blackhall, Davidson’s Mains and Silverknowes have seen a 26.7 per cent increase in average selling prices and South Queensferry and Dalmeny a 25.4 per cent increase.

Average selling prices for typical first-time buyer properties, while still showing positive growth, are calming down compared with the stronger increases for three-bedroom properties, which is often the next step on the property ladder.

This could be a result of the changes to stamp duty last year, when the Scottish Government introduced a three per cent supplementary tax on second homes, as a way to curb the growing buy-to-let market.

It’s still a seller’s market, say ESPC, with a decrease in the number of properties available to buy. This has resulted in a 5.2 per cent increase in average selling prices across east central Scotland, as a lack of properties are increasing demand for those available.

Similarly, time taken to sell is now 23.6 per cent faster than the same time last year – from 38 days down to 29 days.

ESPC business analyst Maria Botha-Lopez said: “The introduction of a supplementary tax on second homes initially drove up the average selling prices for one- and two-bedroom flats.

"But what we are seeing now is three-bedroom properties showing greater price increases, while average prices for one- and two-bedroom flats are now cooling off.

“With recent figures from the Council of Mortgage Lenders revealing an increase in first-time buyer loans and a decrease in buy-to-let loans in the last quarter of 2016, this could also demonstrate that the first-time buyer market is strengthening.

"If this trend continues, this is good news for first-time buyers as they appear to have less competition from buy-to-let investors and selling prices won’t be racing ahead of their ability to save for a deposit.”

The number of homes sold in east central Scotland between December and February of 2017 decreased by 4.9 per cent annually.

The number of new homes brought to market between the months of December and February decreased by 6.0 per cent annually.

A total of 85.5 per cent of properties listed between December 2016 and February 2017 were marketed as ‘offers over’, compared with 78.9 per cent in 2016.