What are the UK areas where house prices have risen the most?

While house prices across the UK have fallen by 3.9% over the last year, more than 70 local authority areas have seen average house prices rise during the same period, according to new research from mortgage lender Halifax.

Higher interest rates impacting on mortgage affordability led to lower demand among would-be buyers, and consequently to lower house prices, Halifax said. However, that national picture masks some big variations in house price performance at a local level across the country, with a number of locations posting strong growth in property prices.

Data from the Halifax House Price Index was analysed and typical house prices in more than 300 local authority areas across Britian in the three months up to September this year were compared to the equivalent figures from 2022 to reveal the areas where house prices have been strongest.

Topping the list is Powys, the largest but least densely populated county in Wales and is known for its villages and market towns. Annual house price growth recorded in the area was +17.4%.

Coming in at second is East Lindsey, which is also the area of England with the strongest property price inflation over the last year at +13.3%, while rounding up the top three is Moray, which has seen the biggest increase in house prices in Scotland over the last year at +10.7%.

Also included in the top 10 are Babergh (+10.3%), Sunderland (+8.9%), Ealing (+7.5%), Westminster / City of London (+7.4%), Bolsover (+7.2%), Cumberland (+6.7%), and Rossendale (+6.7%).

“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,” commented Kim Kinnaird, director at Halifax Mortgages. “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.”

Jeremy Leaf, north London estate agent and a former RICS residential chairman, found the numbers interesting as they show the pattern of values in different areas and how markets are not the same.

“There is no real substitute for studying the market and area you are interested in carefully because it may well be in front of, or behind, the national average or pattern,” he said. “'The market is made up of many different micro-markets, producing different results, which is why it is so important to do the groundwork. A national average figure should be relied upon as a guide only.

“In any event, we tend to be a bit too fixated on prices. There are other factors also worth taking into consideration such as transaction numbers, discount to asking price and time on the market, as well as supply and demand. From neighbourhood to neighbourhood, the picture can alter significantly.”

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