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News: Property hotspots continue in north

Annual house price rises of over 30% are still being seen in Britain, but only in places in the north. Indeed, all four towns recording the biggest price rises in the past year are in Scotland.

The remaining four towns in the top 10 comprise three in northern England – Cleckheaton in West Yorkshire, Darwen in Lancashire and Crook in County Durham – and one in Wales - Port Talbot, said the Halifax in its first quarter regional house price index.

Top 10 UK hotspots

Town

County

2005* average price

2006* average price

% change

Cupar

Fife

117,552

159,332

36%

Lochgelly

Fife

65,203

84,800

30%

Coatbridge

Lanarkshire

94,335

119,732

27%

Lanark

Lanarkshire

125,139

156,018

25%

Cleckheaton

West Yorkshire

125,079

155,567

24%

Darwen

Lancs

101,215

125,199

24%

Port talbot

West Glam

98,829

121,239

23%

Kilwinning

Ayrshire

94,020

114,414

22%

*12 months to March
Source: Halifax house price index

Biggest price gains in Wales, East Anglia and East Midlands in 2006 Q1

The biggest first quarter house price rises were in Wales (4.5%), East Anglia (3.4%) and East Midlands (3.0%). The rises in East Anglia and East Midlands were the strongest seen in these regions for at least eighteen months.

The average price in both East Midlands (£153,592) and Wales (£150,527) passed the £150,000 landmark for the first time in Quarter 1. The average price is now below £150,000 in only four regions: North, Yorkshire & the Humber, North West and Scotland.

The North (-1.2%) was the only region to record a house price fall in Quarter 1. This modest decline, however, needs to be viewed in the context of a 147% rise in the average price in the region over the past five years. Moreover, we do not expect this recent fall to mark the beginning of a downward trend in property prices in the North.

Annual house price inflation in single digits in all British regions

Annual house price inflation in 2006 Quarter 1 was in single digits in all the regions of Britain. The biggest gains in house prices over the past year have been in the North West (9.4%), Yorkshire and the Humber (9.3%) and Wales (8.8%). The smallest increases have been in the South West (1.7%), South East (2.1%) and East Midlands (3.7%).

The annual rate of house price inflation has slowed in all the regions of Britain over the past 12 months with the exception of Greater London where the increase in the past year (7.2%) outstrips the gain in the preceding 12 months (1.1%).

All houses, all buyers (Seasonally adjusted)
1st Quarter 2006 – quarter averages

Region

2006 Q1
index
1983=100

2006 Q1
Standardised
Average
price £

2006 Q1
Quarterly
change
%

2006 Q1
Annual
hange
%

2005 Q1
Annual
change
%

North

555.5

140,166

-1.2

7.3

14.2

Yorks & the Humber

581.7

134.307

2.2

9.3

15.5

North West

553.4

141,556

2.1

9.4

15.3

East Midlands

587.6

153,592

3.0

3.7

12.2

West Midlands

586.7

165,597

2.7

4.5

9.9

East Anglia

556.3

167,366

3.4

4.1

8.4

South West

560.2

185,216

2.0

1.7

5.6

South East

546.7

221,907

0.2

2.1

4.6

Greater London

649.2

258,511

0.5

7.2

1.1

Wales

581.7

150,527

4.5

8.8

9.9

Scotland

393.9

113,955

0.8

6.9

22.9

UK

559.8

172,979

1.6

6.2

9.7

Commenting on the housing market in the UK, Martin Ellis, Halifax chief economist, said: "Scottish towns dominate the list of places recording the highest house price rises over the past year. Scotland's relative affordability has been a key factor behind the country's out-performance of the rest of Britain."

"All 10 towns delivering the strongest price rises over the past year have average house prices below the national average. The relatively high affordability of property in these towns has made them attractive to buyers as they have hunted for bargains. Another common feature of many of these towns has been their close proximity to major conurbations, making them suitable for commuting to major employment centres."

Looking ahead, Martin Ellis concluded: "The annual rate of house price inflation has slowed in all the regions of Britain over the past 12 months with the exception of Greater London.

"The UK housing market is set for a period of broad stability during 2006 with house prices forecast to rise by three per cent, broadly in line with the predicted rise in retail price inflation. Low, single digit, growth is expected to be the norm across most of the country."

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