Cheltenham saw highest house price growth last year

Michael Lloyd

January 2, 2018

The Gloucestershire town of Cheltenham saw the highest percentage rise in house prices of any major UK town or city in 2017, Halifax found. 

The average house price in the town, famous for its horse racing and cultural festivals, was 13% higher than in the previous year.

It rose from £277,118 to £313,150 in 2017; nearly five times the 2.7% increase in the UK as a whole.

Russell Galley, managing director at Halifax, said: “A number of towns and cities have recorded significant rises in house prices over the past year, with all of the top 20 performers recording growth of at least double the national average.

“Unlike last year, the top performers are not exclusive to London and the South East, with the top spot now belonging to Cheltenham in the South West, and towns in East Anglia, East Midlands, North West, Wales and Yorkshire and the Humber also making the list.”

The seaside town of Bournemouth on the south coast saw the second biggest rise, with an increase of 11.7%.

Brighton, on the south east coast completed the top three with an 11.4% rise in the past year.

Of the best house price performers 15 of the top 20 were in London and southern England, including Crawley (10.4%), Newham (10.2%), Peterborough (10.1%), Gloucester (9.5%) and Exeter (9.1%).

As many as 13 towns recorded declines in house prices in 2017, with the largest fall in Perth from £190,813 in 2016 to £180,687 (-5.3%)

There were three marginal decreases in average house prices in Scotland last year. Paisley decreased by -3.6%), Dunfermline (-2.2%) and Aberdeen (-1.1%).

Meanwhile there were five regions with drops of average house prices in Yorkshire and the Humber – Wakefield at -2.9%, Rotherham (-2.2%), Barnsley (-1.6%), Bradford (-0.4%) and Leeds (-0.4%).

There was one decrease in the West Midlands – Stoke on Trent (-4.0%).

Bromley in the South East saw a decrease of (-0.6%), Hounslow in Greater London (-0.2%); and Sunderland in the North (-0.2%).

Galley added: “The majority of towns in which house prices have dropped in the last year, are situated within Scotland or Yorkshire and the Humber.

“Generally speaking, property prices in these areas have been constrained by lower employment levels or relatively weaker economic conditions when compared to those areas that have seen house price growth.”

The top performers outside London and the South making the top 20 this year include Huddersfield (9.3%) in Yorkshire and the Humber, Nottingham (8.9%) and Lincoln (8.4%) in the East Midlands, as well as Stockport in the North West (8.2%) and Swansea in Wales (7.7%)

The average house price in the London boroughs of Richmond upon Thames and Barnet increased in cash terms by over £40,000 since 2016.

In Richmond upon Thames, the average house price has risen by £45,463 (or 7.6%) to £646,112 and in Barnet – £41,697 (or 7.7%) to £584,049.

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