20 things

20 things you should know about...

28 April 2007

• The Halifax Quarter One (Q1) House Price Index has revealed that there is no town in the UK with an average price below £100,000.

• This is compared to five years ago, when over 200 towns had prices below £100,000.
• Lochgelly in Fife was the only town with an average price below £100,000 at the end of 2006. Price rises since then have taken the average price in Lochgelly to £104,738 in Q1 2007.
• However, Lochgelly remains the most affordable town – out of the 489 surveyed – in the UK.
• Craigavon, a new town, and Newtownards in Northern Ireland are the UK’s top property hotspots, with both towns recording a 55 per cent rise in prices over the past year.
• Average prices in Craigavon rose from £118,551 in Q1 2006 to £183,795 in Q1 2007, while average prices in Newtownards reached £197,134.
• The average price in Northern Ireland broke through the £200,000 barrier for the first time in Q1 2007, to £206,495.

• Northern Ireland is now one of the most expensive parts of the UK, Halifax revealed, with only London, the South East and the South West having higher average house prices.
• Halifax indicated that a strong local economy, high levels of immigration and high demand for properties from second homebuyers and buy-to-let investors in the Republic of Ireland had significantly boosted property prices in Northern Ireland over the past few years.
• As a result, the average house price in Northern Ireland had increased by 76 per cent since Q1 2005, far outstripping the UK average gain of 18 per cent.
• From a regional perspective the Halifax Q1 study revealed that the biggest price rises were in Scotland, with 7.50 per cent, the South West with 5.40 per cent and Wales with 4.90 per cent.
• The smallest increases were in the East Midlands, which recorded a rise of 0.2 per cent and Yorkshire and the Humber, at 0.6 per cent.

• House prices have risen most rapidly in Northern Ireland and Scotland over the past year, Halifax indicated.
• Greater London recorded the biggest increase in prices in England, with house prices rising an average of 14.90 per cent.
• The smallest price rises were reported in the North, 5.60 per cent and the East Midlands, at 5.80 per cent, the Q1 study showed.
• Commenting on the findings, Martin Ellis, chief economist at Halifax, said: “House prices continue to rise in a tight market but there are emerging signs that pressure on householders' finances, partly due to the rise in interest rates since last August, is dampening housing demand. Overall, house prices increased by 2.80 per cent in Q1 2007, well below the 4.20 per cent rise in Q4 2006. There is also evidence of reduced market activity.”
• He added: “We expect the higher level of interest rates, negative real earnings growth and above inflation council tax bill increases to lead to slower house price growth over the coming months. Sound economic fundamentals and an ongoing shortage of housing supply will, however, continue to support house prices.”
• The Halifax House Price Index is the UK’s longest running monthly house price series with data covering the whole country going back to January 1983.
• The Index is based on around 15,000 purchases per month.
• Properties over £1 million are included and the index is seasonally adjusted with the seasonal factors updated monthly.