House prices in Birmingham’s B16, covering Ladywood, saw the fastest house price growth over the past year with a with a 17% increase, Barclays Mortgages new Postcode Property Index shows.
Regional cities have overtaken London when it comes to the annual rate of house price growth, as jobs growth and attractive affordability have boosted demand for housing and pushed up house prices.
Birmingham, hosting many restaurants and coffee shops, saw property prices rise to an average of £171,121 in the past 12 months, while London saw prices decrease by 2% on average.
Craig Calder, director of Barclays Mortgages said: “It is fascinating to see the individual postcodes where property prices are growing at a very fast pace, particularly when they are significantly outstripping the city’s average growth.
“It demonstrates how changeable the property market currently is, not just around the UK but within each city.”
Edinburgh’s EH2 followed Birmingham with a 14% increase, while the fastest growing market in London, E5, Clapton, only rose by 5%.
Calder said: “We also understand that it can be hard to really get a grip of what the property market is doing, making it challenging for both potential buyers and sellers.”
EH2 rose on average by nearly £50,000 in the wake of Edinburgh being named as Scotland’s economic powerhouse by the Federation of Small Businesses.
Belfast’s property market on the whole has also struggled in the past year, although the postcode BT5 has seen house price growth significantly outperform that of wider city, partly due to all of their coffee shops, grocers and butchers.
With more affordable housing, good schools in the area and its position within a commuter belt supported by good transport links, the price growth was likely caused by more young families moving to the area.
The Welsh capital, Cardiff, has seen steady house growth in the past year.
Adamsdown saw healthy growth, with the average price of a property in the postcode now over £170,000.
The area has seen significant redevelopment in recent years, partly to help accommodate the many students who have moved to the area to study at the University of South Wales.