There are few subjects that fascinate Brits more than house prices.
As a nation, we are somewhat obsessed with home ownership, and our interest in the value of our bricks and mortar has only grown in recent years off the back of the incredible increases seen in house prices over the past decade. (Although property prices are now starting to fall in some areas.)
There are inevitably significant regional differences across the country, with some areas enjoying more pronounced house price growth than others.
Now a new study has identified the 50 local authorities where house prices have grown the most since 2013.
The house price hotspots
New analysis of house price data by the estate agent Hamptons and MoneyMail has pinpointed the areas of the UK that have seen the most substantial price growth over the past decade.
In some cases, these locations have seen the price of a typical house more than double since 2013.
Here are the local authorities that have seen the biggest house price jumps over that period:
|Local authority||Average house price 2013||Average house price 2023||Percentage increase|
|Barking & Dagenham||£167,410||£356,960||113%|
|City of Bristol||£177,130||£363,230||105%|
|City of Nottingham||£99,010||£193,860||96%|
|Folkestone & Hythe||£174,650||£338,560||94%|
|Causeway Coast & Glens||£100,690||£194,760||93%|
|Rhondda Cynon Taf||£85,990||£164,460||91%|
|City of Peterborough||£131,600||£251,160||91%|
|City of London||£492,810||£931,090||89%|
One of the clear takeaways from this breakdown is how well properties in the east and south-east of England have performed. In some cases, this is down to commuters moving out of London and being willing to put up with a longer trip into the office in return for more space or the chance to have a garden.
This trend only became more pronounced during the pandemic, with the rise in people working from home for at least part of the week.
What has driven house price growth?
There are plenty of factors that have driven substantial house price increases in all sorts of regions of the UK over recent years.
First and foremost has been the gap between supply and demand. It’s no secret that we have a housing shortage in the UK, with the number of new homes built consistently lagging behind the numbers needed to meet demand.
The government has previously suggested that it aims to build as many as 300,000 new homes a year, but we have never got anywhere close to that.
Demand has been further boosted by the cost of borrowing. For most of the last decade, mortgage costs have been extremely low, with the Bank of England’s base rate sat at record lows of 1% or below. Those low mortgage rates meant that significant numbers of would-be borrowers felt comfortable with taking on a mortgage.
There have also been measures from the government that provided a further boost to demand, including introducing schemes like Help to Buy, which allow buyers to purchase a home with a 5% deposit, or the stamp duty holiday, which meant many buyers were able to avoid paying the tax when purchasing a property.
What next for house prices?
However, circumstances have changed, and house prices are starting to tumble downwards.
Typical mortgage rates for example have increased, meaning higher monthly repayments. Given the high rate of inflation, and the fact we are all paying far more on all sorts of household bills, such as council tax and food shopping, households are less able to take on those higher repayments and so may put off property moves.
The Help to Buy scheme has now concluded too, with no direct replacement, so while the supply of homes is not particularly improving, demand has dropped to the point that the imbalance is less pronounced.
And that is causing house prices to fall. House prices dropped in the 12 months to March 2023 at the fastest annual pace seen since 2009, with forecasters warning there may be further reductions to come.
Look After My Bills Newsletter
Get the best money-saving tips, tricks and deals sent straight to your inbox every week. Make sense of your money in partnership with The Money Edit.
John Fitzsimons has been writing about finance since 2007, and is a former editor of Mortgage Solutions and loveMONEY. Since going freelance in 2016 he has written for publications including The Sunday Times, The Mirror, The Sun, The Daily Mail and Forbes, and is committed to helping readers make more informed decisions about their money.
Octopus Energy relaunches energy tracker deal – we explain what you need to know and if it could save you money
If you’re an Octopus Energy customer, you may be able to save on your energy bills with the relaunch of its tracker deal. We look at how it works
By Sue Hayward Published
Three energy firms pay £8m in switching compensation - has your provider paid out?
More than 100,000 customers have received compensation after changing providers, but is now a good time to switch energy suppliers?
By Tom Higgins Published
Moving home: why failing to share your new address could cost you money
When you move home you’ll want to share your new address with family and friends – but being slow to update your contact details with councils, banks and the DVLA can be costly
By Sue Hayward Published
Skipton Building Society to offer deposit-free mortgages for “trapped renters” - everything you need to know about 100% deals
Everything you need to know about how to get a mortgage with no deposit
By Katie Binns Published
Stamp duty: are you entitled to a tax refund worth thousands?
There are plenty of reasons why homebuyers may be entitled to a stamp duty refund, but it’s important to only claim if you’re eligible for a refund (and beware the claims management companies)
By John Fitzsimons Published
Faster mortgage support for Universal Credit claimants – what it means for you
If you claim Universal Credit, you can now get quicker support with paying your mortgage. We look at when you can get it and how to access it
By Stephanie Baxter Published
Should I fix my mortgage rate?
Interest rates are expected to rise again on the back of stubborn inflation, before falling next year. We look at the pros and cons of fixing your mortgage rate and what to consider if you need to remortgage soon.
By Stephanie Baxter Last updated
Selling your home: avoid these mistakes to get the best possible price
From boosting kerb appeal to clearing clutter, there are crucial steps to take to ensure you get the highest price when selling your home
By John Fitzsimons Last updated
Interest rates rise to 4.25% - what does it mean for your money?
The Bank of England has increased the base rate for the 11th time in a row. We look at whether rates could rise further this year, and what the latest hike means for your mortgage and savings
By Ruth Emery Published
New support for struggling mortgage borrowers - but there's a cost
Around 356,000 borrowers may be at risk of missing monthly payments by summer 2024. We explain what help will now be available - and the impact it can have on your credit score
By Stephanie Baxter Last updated