Insights

Location Location? There are a number of local authorities where house prices have risen

It seems that some places are bucking the trend in the housing market with over 70 local authority areas benefitting average house prices rises over the last year.

Overall at the national level, house prices are down by -3.9% over the last year.

The increase in interest rates has cut the number of people who can afford a mortgage.

And people who can get on the housing ladder are increasingly opting for ‘Marathon mortgages.‘

Local authorities where house prices have risen

Residential property prices in some parts of Britain have continued to increase strongly over the past year despite the wider housing market slowdown, according to Halifax.

More than 300 local authority areas across Britain were analysed during Q3 2023 based on their house price index.

This was compared with house price data covering the corresponding period last year.

The study revealed that house prices rose in more than 70 areas, led by gains in the Brecon Beacons, Powys, in Wales, where house prices rose by an average of 17.4% year-on-year.

Kim Kinnaird, director at Halifax Mortgages, said: “There are multiple factors which can impact house prices in your local area, ranging from the mix of properties available and the extent of any new housing, to the quality of schools and abundance of job opportunities.

“What’s clear is that the UK housing market is not a single entity that performs in a uniform way across the country, there are differences. While at a national level the current squeeze on mortgage affordability has seen property prices fall over the last year, in many regions there remain pockets of house price growth. While a limited supply of properties for sale could be a factor, this also suggests in some areas, local market activity – and demand among buyers – remains strong.

“Many of the places highlighted in our research also benefit from more remote or rural surroundings and incorporate areas of outstanding natural beauty. These are traits which continue to be desirable for prospective homeowners, bucking the trend of the wider performance of the housing market.”

Top ten strongest growth

Here are the top 10 local areas of Britain with the strongest house price growth over the past year:

1. Powys, Wales, £216,307, £253,958, +17.4%, or £37,651

2. East Lindsey, East Midlands, £194,533, £220,421, +13.3%, or £25,888

3. Moray, Scotland, £162,258, £179,606, +10.7%, or £17,347

4. Babergh, Eastern England, £317,383, £349,965, +10.3%, or £32,583

5. Sunderland, North East, £138,579, £150,862, +8.9%, or £12,283

6. Ealing, London, £494,100, £531,127, +7.5%, or £37,027

7. Westminster/City of London, London, £714,242, £767,350, +7.4%, or £53,108

8. Bolsover, East Midlands, £167,398, £179,453, +7.2%, or £12,054

=9. Cumberland, North West, £165,346, £176,470, + 6.7%, or £11,124

=9. Rossendale, North West, £185,658, £198,102, + 6.7%, or £12,444

Strongest house inflation

Here are the local areas with the strongest house price inflation in Scotland, Wales and the English regions over the past year, according to Halifax:

– East Lindsey, East Midlands, £194,533, £220,421, + 13.3%, or £25,888

– Babergh, Eastern England, £317,383, £349,965, + 10.3%, or £32,583

– Ealing, London, £494,100, £531,127, + 7.5%, or £37,027

– Sunderland, North East, £138,579, £150,862, + 8.9%, or £12,283

– Cumberland, North West, £165,346, £176,470, + 6.7%, or £11,124

– Moray, Scotland, £162,258, £179,606, + 10.7%, or £17,347

– Runnymede, South East, £439,825, £462,301, + 5.1%, or £22,476

– Torridge/West Devon, South West, £295,521, £306,436, + 3.7%, or £10,915

– Powys, Wales, £216,307, £253,958, + 17.4%, or £37,651

– Sandwell, West Midlands, £178,755, £185,798, + 3.9%, or £7,043

– Kingston-upon-Hull, Yorkshire and the Humber, £121,289, £127,523, + 5.1%, or £6,234

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