UK house prices: local areas with biggest increases ranked despite national average price dropping by 3.9%

The national trend for house prices appears to be on the way down, but some local areas are outliers in this trend.

According to data from the Halifax House Price Index, house prices at a national level have shrunk by 3.9% year-on-year, from Q3 2020 to Q4 2023. It comes as higher interest rates continue to have a dramatic impact on mortgage affordability and in turn the number of would-be buyers.

The data has also shed light on some areas of the UK in which house prices have continued to rise. Kim Kinnaird, director of 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.

Ms Kinnaird added: “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.”

The local areas with the biggest jump in house prices over the past year are:

1. Powys, Wales: +17.4%
2. East Lindsey, East Midlands: +13.3%
3. Moray, Scotland: 10.7%
4. Babergh, eastern England: +10.3%
5. Sunderland, North East: +8.9%
6. Ealing, London: +7.5%
7. Westminster/City of London, London: +7.4%
8. Bolsover, East Midlands: +7.2%
9. Cumberland, North West: +6.7%
10. Rossendale, North West: +6.7%

Powys has seen the largest house price increase from 2022 to 2023. With a 17.4% jump in prices, the largest but least densely populated Welsh county has bucked the national trend when it comes to house prices, with the average price of a property sitting at £216,307 at the end of 2022 jumping to £253,958 one year later.

The biggest increase in England was seen in the district of East Lindsey in Lincolnshire. An annual increase of £25,888 has seen prices go from £194,533 to £220,421 on average.

Moray saw the biggest jump in Scotland, with a 10.7% increase in prices. The largely rural area has seen the price of property go from £162,258 to £179,606 in the past year, an increase of £17,347 on average.

All three of the top local areas for increase house prices not only buck the national trend but also buck their regional trends too. House prices in Wales as a whole have decreased by 3.6% compared to Powys' 17.4% increase, prices in the East Midlands have decreased by 4% compared to East Lindsey's 13.3%, and the price of houses in Scotland have decreased by 0.8% despite Moray's house price growth of 10.7%.