29th December 2014
The value of the average UK home jumped by 8.5%, or more than £16,000, during 2014 according to new research from Halifax.
As a result of the price surge the typical property is now worth £209,428, up from £193,087, 12 months ago.
The lender found that the London Borough of Greenwich recorded the biggest rise in house prices among major UK towns.
Based on Halifax’s own house price data, the average house price in this south-east corner of the capital was 24.6% higher than in the previous year, increasing from £263,183 to £328,044 in 2014.
This is a significantly faster increase than in London as a whole, which saw price growth of 13% over the same time.
Ealing, in West London, experienced the second biggest rise in average house prices with an increase of 24.5%. Nine of the 10 areas with the strongest price growth in the past year are in London; these include Tower Hamlets, up 22%, Kingston upon Thames, with a 21.4% rise and Sutton in south London, which is 20.7% higher. Crawley in Sussex, up 22.4% – the third largest rise, is the only town outside London making the top 10.
Sheffield is the top performing area outside the south with prices rising by an average of 13.7% over the past 12 months.
Halifax highlighted that over the past five years, the South Yorkshire city has seen a significant increase in employment, particularly in managerial, professional and technical skilled occupations, which may have been a key factor in helping to boost housing demand, and hence prices, in the city.
The towns experiencing a decline in the average value of homes over the past year are all outside southern England. In terms of the largest house price falls, the average property value in Bury in Lancashire fell 4.8%, Keighley in West Yorkshire dropped 4.4% and Nuneaton in Warwickshire decreased by 3.2%.
Four of the ten weakest performing towns are in the North West; besides Bury, they are St. Helens, down 2.6%, Preston, which is 2% lower and Rochdale which is off by 0.9%.
Commenting on the annual figures, Craig McKinlay, mortgage director at Halifax, said: “A number of towns and cities have recorded significant rises in house prices over the past 12 months. Nine of the ten best performing areas are in the capital, and therefore within easy reach of central London. Continuing improvements in the economy, rising employment and low mortgage rates will no doubt have supported housing demand and, combined with shortage of homes coming on to the market, will have contributed to rising property values.
“At the other end of the spectrum, several of the towns experiencing price falls in the past year are still suffering from relatively weak employment conditions, which may have had an adverse impact on their local housing markets.”
10 Towns with biggest increase in average house prices, 2013-2014
|Town/Area||Region||Average House Price (2013)*||Average House Price (2014)*||1 yr % change|
|Tower Hamlets||Greater London||347,645||424,163||22.0%|
|Kingston Upon Thames||Greater London||379,520||460,853||21.4%|
|Waltham Forest||Greater London||274,924||331,080||20.4%|