PROPERTY prices have soared by almost 10% in some areas of the UK in the past year, despite values generally stagnating across the country.
The value of a typical home hit a record high of £293,999 last month, according to Halifax, the nation’s biggest mortgage lender.
This is 3.9% higher than last year, when a typical house was worth £283,053 – £10,946 less than it is now.
Property prices stalled for more than two and a half years as higher mortgage rates made it harder for households to afford to move and take on a higher mortgage.
With fewer buyers looking for homes, it meant there was less competition for houses, which reduced their price.
But prices have soared by up to 9.2% in some regions, adding more than £20,000 to the value of a typical home, estate agent Hamptons has found.
If you live in North East Derbyshire, Cherwell or Winchester then you could be one of the big winners.
But if you live in Adur, Thanet or Portsmouth, you may have missed out.
To find the areas of the UK where house prices have risen the most, Hamptons analysed official government figures from the Office for National Statistics.
It analysed data from June, July and August from every local authority in Great Britain and compared these average prices to the same period last year.
Here we reveal the 50 house price hotspots this year – and those where prices have plummeted.
East Midlands sees prices soar
North East Derbyshire saw the greatest increase in house prices of any UK region in percentage terms.
House prices skyrocketed by 9.7% in the area over the last year, pushing up the price of a typical home by £21,220.
An average house in the region is now worth £239,560, well below the national average.
The area is home to the Peak District National Park and Bakewell, where the famous tart was born.
Meanwhile, the close by town of Buxton gives its name to the famous bottled water, which is sourced from here.
The areas where prices have fallen the most
In ten areas house prices have plummeted in the past year. They are:
- Adur, South East: Price fell: -3.9%, Value decrease: £14,400
- Thanet, South East: Price fell: -3.9%, Value decrease: £11,560
- Portsmouth, South East: Price fell: -4.0%, Value decrease: £10,260
- Maldon, East: Price fell: -4.1%, Value decrease: £15,940
- Hammersmith and Fulham, London: Price fell: -4.2%, Value decrease: £34,640
- Castle Point, East: Price fell: -4.6%, Value decrease: £16,960
- Ipswich, East: Price fell: -4.8%, Value decrease: £11,270
- Torridge, South West: Price fell: -5.7%, Value decrease: £17,200
- Dover, South East: Price fell: -6.4%, Value decrease: £19,770
- Rutland, East Midlands: Price fell: -7.8%, Value decrease: £31,590
Property prices have also climbed in other areas of the East Midlands.
Just over an hour away in Newark and Sherwood, prices have jumped by 7.2% in just 12 months.
Much of the area lies within the ancient Sherwood Forest, which attracts thousands of visitors each year.
A typical home in the region has seen £15,970 added to its value in the past year.
Properties can be snapped up for £239,270 on average, up from £223,300 last October.
Meanwhile, the District of High Peak between Greater Manchester and South Yorkshire has also benefitted from house price rises.
A home in the area can be picked up for £273,430 after prices climbed 6.9% in the past year.
Scottish houses see prices hiked
To the north-west of Glasgow City lies West Dunbartonshire, a leafy green area which is home to many of the city’s commuter towns and villages.
Property prices are now 9.2% higher than last year when a typical home was worth £128,250.
Values soared by £11,830 in the region, pushing up the cost of a typical home to £140,080.
Meanwhile, nearby North Lanarkshire has also experienced similar price growth in the last 12 months.
The region borders the north-east of Glasgow City and is also a commuter hub for city workers.
Good transport links including the M8 motorway and railway track make this area a popular choice for city workers who commute a couple of days each week.
Prices in the area rose by £10,320 in the last year, taking the cost of a typical home from £135,850 to £146,170.
This 7.6% rise is just shy of the increase in values seen in neighbouring West Dunbartonshire but still beats the national average.
Aneisha Beveridge, head of research at Hamptons, said: “Over the past year, commutable areas near larger cities were the top performers in terms of house price growth.
“First-time buyers and second-steppers, now enabled by easing mortgage rates, have been increasingly seeking affordable homes on the fringes of cities.”
As many younger buyers spend more time in the office they are keen to find the best of both worlds, she explains.
Windfall in Winchester
Of all the local authorities, houses in Winchester saw their value increase the most of any UK region in real terms.
The value of an average home was up by £35,720 in just one year after prices rose by 7.7%.
A typical house in the historic area is now worth £500,120, well beyond the budget of most families.
Cherwell in the South East recorded the second-highest increase in house prices in real terms.
The North Oxfordshire district is close to the historic university city of Oxford and the two market towns of Banbury and Bicester.
Prices grew by 8.4% in just one year, adding £28,300 to the value of a typical home, which is now worth £363,950.
Meanwhile, Stratford-upon-Avon in the West Midlands saw house prices soar by £26,910.
A typical home in “Shakespeare’s town” is now worth £384,830 after prices rose by 7.5% in 12 months.
Prices tumble in seaside towns
Other areas of the UK have not fared so well.
The beautiful region of Adur in the South East of England may boast a bustling port and pebbled beach but its property prices are nothing to write home about.
Prices plummeted by 3.9% in the past year, wiping £14,400 off the value of a typical home.
A property in the area can be picked up for £359,580, down from £373,980 last October.
One hour down the coast in Portsmouth, prices have also taken a tumble.
An average home is now worth £245,700 after prices slid by 4% in the last 12 months.
This is £10,260 less than last year when an average property could be picked up for £255,960.
The historic dockyard, Spinnaker Tower and Royal Armouries may attract tourists but not higher property prices.
Prices also plunged in the seaside regions of Thanet, Maldon, Castle Point and Ipswich.
Of the ten regions where values slowed the most, eight of them were in coastal towns, Hamptons found.
Aneisha Beveridge at Hamptons said: “Prices in the South have lagged, a trend that’s been playing out over the last eight years.
“In particular, southern coastal towns – largely popular during the pandemic – have seen prices fall back following the double-digit price increases seen post-Covid.”
As workers flock back to the office, these areas which are far from cities and often have poor transport links, have seen property prices fall.
What help is out there for first-time buyers?
GETTING on the property ladder can feel like a daunting task but there are schemes out there to help first-time buyers have their own home.
Help to Buy Isa – It’s a tax-free savings account where for every £200 you save, the Government will add an extra £50. But there’s a maximum limit of £3,000 which is paid to your solicitor when you move. These accounts have now closed to new applicants but those who already hold one have until November 2029 to use it.
Help to Buy equity loan – The Government will lend you up to 20% of the home’s value – or 40% in London – after you’ve put down a 5% deposit. The loan is on top of a normal mortgage but it can only be used to buy a new build property.
Lifetime Isa – This is another Government scheme that gives anyone aged 18 to 39 the chance to save tax-free and get a bonus of up to £32,000 towards their first home. You can save up to £4,000 a year and the Government will add 25% on top.
Shared ownership – Co-owning with a housing association means you can buy a part of the property and pay rent on the remaining amount. You can buy anything from 25% to 75% of the property but you’re restricted to specific ones.
Mortgage guarantee scheme – The scheme opens to new 95% mortgages from April 19 2021. Applicants can buy their first home with a 5% deposit, it’s eligible for homes up to £600,000.
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