According to a recent analysis by Halifax, while the overall UK housing market has experienced a slowdown, certain areas have seen significant growth in residential property prices. This study, which encompassed over 300 local authority areas in Britain, compared house price data from the third quarter of 2023 with the same period last year.

Key Findings

The Halifax study revealed a notable rise in house prices in over 70 areas. Leading this growth was the Brecon Beacons region in Powys, Wales, where prices soared by an average of 17.4% year-on-year.

Kim Kinnaird, director at Halifax Mortgages, emphasized the diversity of the UK housing market, noting that while national trends point to a decline in property prices due to mortgage affordability issues, many regions are still experiencing pockets of growth. Factors influencing these regional trends include the mix of available properties, new housing developments, quality of local schools, job opportunities, and the appeal of rural or remote settings.

Top 10 Areas for House Price Growth

1. Powys, Wales: Average price rose from £216,307 to £253,958, a 17.4% increase.
2. East Lindsey, East Midlands: A 13.3% increase, with prices going from £194,533 to £220,421.
3. Moray, Scotland: Prices rose by 10.7%, from £162,258 to £179,606.
4. Babergh, Eastern England: A 10.3% increase, with prices growing from £317,383 to £349,965.
5. Sunderland, North East: An 8.9% rise, with prices increasing from £138,579 to £150,862.
6. Ealing, London: Prices rose by 7.5%, from £494,100 to £531,127.
7. Westminster/City of London: A 7.4% increase, with prices rising from £714,242 to £767,350.
8. Bolsover, East Midlands: Prices increased by 7.2%, from £167,398 to £179,453.
9. Cumberland, North West: A 6.7% rise, with prices going from £165,346 to £176,470.
10. Rossendale, North West: Also a 6.7% increase, with prices rising from £185,658 to £198,102.

Regional Highlights

• Scotland: Moray leads with a 10.7% increase.
• Wales: Powys tops with a 17.4% rise.
• England: Different regions show varied growth, with East Lindsey in the East Midlands leading at 13.3%.

Expert Perspectives

Tom Bill, head of UK residential research at Knight Frank, points out that the UK consists of thousands of individual housing markets, leading to varied price growth even within the same local authority. He highlights the narrowing affordability gap between London and other parts of the country.

Nigel Bishop of Recoco Property Search observes a growing trend towards rural living, especially among city dwellers and young families seeking a community-oriented lifestyle. This shift is driving up prices in quaint towns and villages.

Jeremy Leaf, a north London estate agent, stresses the importance of understanding local market nuances. He advises potential investors to look beyond national averages and consider other factors like transaction volumes, time on the market, and supply and demand dynamics.