Halifax published data last month which showed they had climbed by 16.8% across the UK. But if you zone in more locally, you’ll see some areas have experienced house price inflation which is much higher than others.
Now, mortgage broker, Responsible Life, has identified 25 places where house prices have risen beyond 25% since the pandemic hit.
At the top of list is Burnley in Lancashire, where prices have grown 37.1% since the pandemic began in March 2020. Next are Merthyr Tydfil in South Wales (34.2%) and Bolsover in Derbyshire (32%).
The mortgage broker revealed swathes of Wales had been hoovered up by house hunters happy to chase prices during the race for space, while locations across the North of England have also been some the biggest beneficiaries to this trend.
But the south of England had much less representation in the list of top house price rises. Only Bath, Lewes and Torquay made it to the Top 25 in this region.
Responsible Life said all these three offered a mix of town and country living away from the big smoke – which would have driven its popularity amongst those seeking space away from cities.
It said, the City of Westminster was the worst performer — down 3.1% over the same period.
While the UK housing market is still experiencing the strongest period of annual growth since the early 2000s, a cost-of-living crisis, interest rate hikes and rising borrowing costs have all led to speculation that the housing market will soon cool sharply.
Winners and losers
In the meantime, the house price inflation experienced in the last two years, will mean some will reap rewards but others will face more challenges.
For anyone with a home already, especially those who are older and approaching retirement, this growth will be hugely rewarding. It will also provide a healthy equity boost for remortgagers.
But Steve Wilkie, executive chairman of Responsible Life, explained for first-time buyers it’s another hurdle. “These housing markets have seen some thundering house price growth since the pandemic began,” he said.
“The cost-of-living crisis is hurting people of all ages and the rally has stretched affordability to breaking point for younger buyers.”
He added: “However, for retirees, it’s a different story. Many homeowners approaching retirement, or already retired, are being offered some protection by the strength of their biggest asset.”
The 25 towns and cities where house prices have risen 25% since the start of the pandemic (source: Responsible Life)
|Location||March 2020||April 2022||Change|