Some areas of the UK have seen house prices jump by as much as 10% over the last year, according to Hamptons.
While most house price indices state that average house prices across the country have slumped off the back of higher mortgage costs, new analysis suggests that certain areas have reversed the trend and actually become even more valuable over the last 12 months.
So which local authorities are the 2023 house price hotspots?
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The house price hotspots
New analysis by Hamptons has pinpointed the 30 towns which have seen the most significant house price growth over the last 12 months. Despite the difficulties faced by the housing market generally, properties in each of these towns have grown by 5% over the last year.
Here are the local authorities which Hamptons’ calculations reckon have seen the strongest growth:
| Local authority | Average house price in 2023 | Change from 2022 (cash / percentage) |
|---|---|---|
| East Lothian | £323,730 | £30,330 / 10.3% |
| Fylde | £242,290 | £17,340 / 7.7% |
| Rutland | £393,890 | £27,980 / 7.6% |
| West Lancashire | £232,920 | £15,900 / 7.3% |
| Amber Valley | £231,430 | £15,490 / 7.2% |
| Telford and Wrekin | £225,580 | £14,980 / 7.1% |
| Harborough | £373,800 | £24,130 / 6.9% |
| City of Nottingham | £192,550 | £12,120 / 6.7% |
| Rochdale | £191,610 | £11,950 / 6.7% |
| North Tyneside | £206,830 | £12,800 / 6.6% |
| Merthyr Tydfil | £154,300 | £9,460 / 6.5% |
| West Oxfordshire | £403,270 | £24,740 / 6.5% |
| Broxtowe | £249,080 | £15,220 / 6.5% |
| City of London | £908,520 | £54,300 / 6.4% |
| Swindon | £270,830 | £15,860 / 6.2% |
| Mid Devon | £312,930 | £18,050 / 6.1% |
| SouthTyneside | £161,040 | £9,180 / 6% |
| Knowsley | £178,650 | £10,180 / 6% |
| Cannock Chase | £227,520 | £12,760 / 5.9% |
| Malvern Hills | £334,800 | £18,670 / 5.9% |
| Northumberland | £194,770 | £10,710 / 5.8% |
| Bolsover | £174,940 | £9,410 / 5.7% |
| South Derbyshire | £250,720 | £13,470 / 5.7% |
| Lancaster | £199,580 | £10,510 / 5.6% |
| City of Peterborough | £243,270 | £12,710 / 5.5% |
| Sandwell | £200,350 | £10,390 / 5.5% |
| NW Leicestershire | £274,340 | £14,200 / 5.5% |
| Derbyshire Dales | £338,890 | £17,430 / 5.4% |
| Oadby and Wigston | £283,100 | £14,550 / 5.4% |
| Preston | £160,660 | £8,250 / 5.4% |
The research suggests that the north west of England has fared well over the last year, featuring frequently in the list, while coastal towns have also performed well.
It’s notable how little crossover there is with separate research pinpointing towns which have seen substantial house price growth over the last year, published by Halifax.
The house price coldspots
At the other end of the scale, there have been certain areas which have seen significant house price drops over the last year.
Here are the 10 coldest house price areas according to Hamptons:
| Local authority | Average house price in 2023 | Change from 2022 (cash / percentage) |
|---|---|---|
| Gwynedd | £204,510 | -£2,320 / -1.1% |
| West Dunbartonshire | £133,120 | -£1,560 / -1.2% |
| Islington | £703,790 | -£8,360 / -1.2% |
| Elmbridge | £687,720 | -£9,660 / -1.4% |
| South Ayrshire | £165,960 | -£2,700 / -1.6% |
| Burnley | £110,040 | -£2,370 / -2.1% |
| Pembrokeshire | £231,760 | -£5,240 / -2.2% |
| Orkney Islands | £201,470 | -£5,250 / -2.5% |
| City of Aberdeen | £135,920 | -£8,770 / -6.1% |
| Kensington and Chelsea | £1,332,890 | -£147,990 / -10% |
What is happening with house prices?
House prices have dropped noticeably this year. According to the latest Nationwide house price index, prices have dropped by an average of 3.3% over the year to October, while Halifax reckons prices have fallen by 3.2% over the same time period.
This is in large part due to the higher mortgage interest rates seen since the mini Budget last year. As borrowing costs have grown sharply, many would-be buyers have put their plans on hold, and those lower activity levels have pushed prices down.
However, it’s worth noting that mortgage rates have started getting cheaper of late. Recent data from Moneyfacts highlighted that in October online 13 lenders had fixed rate mortgages priced below 5%, but that number has more than doubled recently.
House prices have also been rising on a monthly basis. Halifax found that prices grew 1.1% between September and October, for example.
That said, vendors are increasingly likely to accept a significant discount from the asking price from prospective buyers. Data out this week from property portal Zoopla found that sellers are accepting an average £18,000 drop from the asking price in order to secure a sale currently, the highest level in five years.
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