As we step into the second half of the year, the property market across Fife and Dundee continues to show resilience. Easing mortgage rates, steady demand, and shifting rental conditions are shaping a more balanced landscape for both buyers and landlords.

🔑 Mortgage Rates & Buyer Sentiment

Mortgage rates have softened slightly, with average two- and five-year fixed rates sitting just over 5%. While still higher than pandemic-era lows, this modest drop has helped stabilise buyer confidence, particularly among first-time buyers and second-steppers.

This renewed activity is evident across both Fife and Dundee, where well-prepared properties are attracting motivated buyers.

🏡 Sales Market at a Glance

Dundee
According to recent data from the ONS and Zoopla, average house prices in Dundee now sit around £140,000, with annual growth of 4.9%, making it the second-fastest-growing city in Scotland behind Glasgow.

• First-time buyers paid an average of £121,000
• Mortgage-based purchases averaged £150,000

Fife
Fife continues to perform strongly, with average property prices at £169,000, up 7.4% year-on-year.

• Mortgage-backed purchases in the region have climbed 7.7%, averaging around £172,000

Across both areas, well-presented, realistically priced homes are generating strong interest. In particular, properties with river views, gardens, and garages remain in high demand — especially in Newport-on-Tay, which continues to be a popular choice for buyers relocating from Dundee and beyond.

The pace of the market has moderated slightly. Buyers have more breathing space to make decisions, and sellers who invest in presentation and accurate pricing are seeing consistent results.

🏘️ Rental Market Update

Dundee & Angus
The average rent in Dundee now stands at £832 per month, marking a 2.8% rise compared to the same time last year (ONS, June 2025). This is slightly below the national average increase of 4.4%, suggesting a cooling of growth, but not of demand.

Key Change
In April, rent caps on existing tenancies were lifted, returning the market to open conditions. While national figures suggest some slowdown, demand across Fife and Dundee remains robust, particularly for well-maintained family homes and quality one- and two-bedroom flats.

Landlord Insight
Tenants are price-sensitive, and small reductions in rent or improvements to condition can significantly increase interest. Presentation, flexibility, and accurate pricing remain vital in securing strong tenancies in a competitive market.

🔍 Looking Ahead

• Sales: The outlook for the remainder of 2025 is cautiously optimistic. With rates expected to hold steady or ease slightly, we anticipate continued interest from first-time buyers and home movers.
• Lettings: While the pace of rent growth may have slowed, tenant demand in well-connected areas remains strong. We’re seeing consistent enquiries for homes near schools, transport links, and green spaces, particularly in towns like Cupar, Newport, and Tayport.

🗣 Local Perspective

Dundee and Fife remain standout performers in Scotland’s housing market. As the mortgage market stabilises, and landlords adjust to post-rent cap conditions, the region continues to offer opportunities, whether you’re buying, selling, or letting.

If you’re considering a move or letting a property, we’re always happy to offer honest advice tailored to the current climate.