Newham in London recorded the biggest percentage rise in house prices among major UK towns and cities over the past year, according to new research by Halifax.
LONDON, 4-1-2016 — /EuropaWire/ — Based on Halifax’s own house price data, the average house price in the London borough was 22% higher than in the previous year, increasing from £261,399 to £319,522 in 2015. This is nearly double the 12% increase in London as a whole.
Royston in Hertfordshire experienced the second biggest rise in average house prices with an increase of 19%. All ten top performers are in London and the South East (see Table 1).
Top performers outside the South East
Stroud in Gloucestershire, Wellingborough in Northamptonshire, and Solihull in the West Midlands were the top performers outside London and the South East; recording price rises of 14%-15% over the past year (see Table 2).
A small number of towns recorded modest declines in house prices 2015: Merthyr Tydfil in south Wales (-3.8%), Colwyn Bay in north Wales (-2.3%), Durham (-2.1%), and Coalville in Leicestershire (-0.5%).
The ten worst performing towns are outside London and the South East with the exception of the country’s most expensive area; Kensington and Chelsea, where prices have risen by just 1% in the last year (see Table 3).
Martin Ellis, housing economist at Halifax, commented:
“Those areas that have seen the biggest house price increases over the past year are either in outer London or within close commuting distance of the capital. Demand in these areas has risen as rapid house price rises in central London in the past few years have caused increasing numbers of people to look for property in more affordable areas.
“A few towns have experienced modest price falls. These areas are typically still suffering from relatively weak employment and economic conditions, which has dampened local housing demand.”
Editors’ Notes: 1 The prices quoted in this release are taken from the Halifax House Price database and refer to average prices for the twelve months to November of each year. Prices are arithmetic average prices of houses – otherwise known as crude averages – on which an offer of mortgages has been granted. These prices are not standardised and therefore can be affected by changes in the sample from year to year – as such care should be taken when comparing prices.
“This report is prepared from information that we believe is collated with care, however, it is only intended to highlight issues and it is not intended to be comprehensive. We reserve the right to vary our methodology and to edit or discontinue/withdraw this, or any other report. Any use of this report for an individual’s own or third party commercial purposes is done entirely at the risk of the person making such use and solely the responsibility of the person or persons making such reliance. “© Bank of Scotland plc all rights reserved 2015.
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