"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"
- Kim Kinnaird - Halifax
According to the latest housing data released by Halifax, over 70 local authority areas have seen their average house prices rise over the last year, defying trends seen across the rest of Britain.
The analysis – based on data from the Halifax House Price Index – looked at typical house prices and compared them to the equivalent figures from 2022.
At a UK level, house prices are down by -3.9% over the last year, with higher interest rates impacting mortgage affordability, which has fed through to lower demand among would-be buyers.
However, that national picture masks some big variations in house price performance at a local level across the country, with a number of locations posting strong growth in property prices during 2023.
The top 3
Top of the list is Powys, with annual house price growth of +17.4%. The largest but least densely populated county in Wales, it’s known for its villages and market towns and features a stunning landscape of valleys and mountains, including most of Brecon Beacons National Park. Newtown, also known as 'Y Drenewydd' in Welsh, is the largest town in Powys.
Next is East Lindsey, which is also the area of England with the strongest property price inflation over the last year (+13.3%). Flanking the east coast of Lincolnshire, it’s home to the Lincolnshire Wolds, an Area of Outstanding Natural Beauty (AONB). It also features the award-winning Blue Flag beaches of Skegness, Mablethorpe and Sutton-on-Sea.
Making up the top three is Moray, which has seen the biggest increase in house prices in Scotland over the last year (+10.7%). Another largely rural area, it features an array of top golf courses and many of Scotland’s whisky distilleries. Also taking in part of the Cairngorms National Park, it’s equally famous for its colony of bottle-nose dolphins living in the Moray Firth.
Kim Kinnaird, Director, 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.
“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.”