With UK house prices soaring to new heights and becoming more expensive than ever before, there has rarely been a better time to get yourself on the property ladder.
While the stamp duty holiday is sadly a thing of the past, there are still some great schemes in place to help first-timers get on the property ladder.
Thankfully, you don’t have to be a first-time buyer to make the most of the current surge in house prices across the country.
As we have previously covered on Residential People (another hotspot article), current homeowners are increasingly seeking new pastures due to the change in lifestyle brought upon by the work from home revolution and the rise in hybrid working solutions following the COVID-19 outbreak last year.
Throughout this blog post, we will be looking at data provided by the UK’s longest-running monthly house price series, the Halifax House Price Index and identify six regions across the UK that have recorded the greatest annual change in house prices over the past 12 months. This article will also give you an idea of the average asking price of a certain region and the types of property you’re likely to find within the area.
While some of the regions listed below might have prices that are far below the current UK average asking price of £270,027, their prices are still on the rise and are significantly higher than this time last year, making them a hotspot for sellers and property investors alike.
UK Hotspot Regions with the Highest Annual Change in Prices
While Wales might not exactly be the first destination you think of when it comes to buying a property in the UK (especially if you’re a younger property-seekers in need of the hustle and bustle that life in a city can bring), did you know that of all the regions in the United Kingdom, Wales has actually seen the highest annual rise in house prices?
Figures show that Wales overall recorded a 12.9% rise in annual prices as of October 2021, yet prices in the region remain over £70,000 cheaper than the national average.
With properties costing on average £198,880, it’s easy to see why savvy property investors are eyeing up Wales as a premier hotspot when coupled with Wales’ stunning natural beauty, beaches and countryside.
Famous for its stunning scenery and shipbuilding history, Northern Ireland is also becoming popular due to its currently booming property market.
Over the course of the last 12 months, prices in Northern Ireland have risen by 11.3%, bringing the average asking price in the country to £169,308.
While the increased property prices are great news for property investors, it’s worth noting that at present, the demand for housing in Northern Ireland far exceeds the supply, so be prepared to fight tooth and nail to secure a property before it falls into the hands of another investor.
Home to Liverpool and the highly sought after Greater Manchester area, the North West of England has seen a significant 10.4% rise in house prices over the last 12 months.
Homes in the North West now cost on average £205,881. Manchester also has the highest student population in Europe, making it easy to see why the region has become a UK hotspot for property investors.
Also in the South West is Bristol, the most populous city in the region and the 11th most populated city in the UK overall.
Bristol is rapidly becoming a prime destination for property-seekers with young families, with the city having seen one of the UK’s biggest house prices rise over the past 10 years.
Homes in Bristol, in particular, are now reportedly 68% higher than they were 10 years ago, making Bristol a no-brainer when it comes to smart property investment.
Overall the South West has seen a 9.8% increase in the average house price in the past 12 months, bringing the asking price to £280,460.
Scotland has always proved a popular destination for tourists, boasting an eclectic mix of natural rural beauty and landscapes and the iconic and historic city design of places such as Edinburgh.
Meanwhile, Glasgow, Scotland’s capital, often features high on the ‘best places to live in the UK’-style lists due to its excellent travel network and high-quality nightlife.
Overall, Scotland has seen an 8.6% increase in house prices in the last 12 months, bringing the average asking price to £190,023.
Property prices in the East Midlands are again undergoing a surge in recent times, with the region having an 8.4% increase in the average asking price. Homes in the East Midlands now cost an average of £221,999, making it an affordable and potentially profitable hotspot for savvy property-seekers.
What’s this? A list of UK hotspots and London doesn’t feature? As many of you will know, property prices in the capital are relatively high compared to the rest of the UK, with the average asking price for a Greater London property coming in at £514,907- far above the UK’s average of £270,027.
As a result of the typically higher asking prices, London property, therefore, sees less annual growth compared to cheaper (and sometimes less desirable) areas of the UK. As of October’s Halifax House Price Index, annual growth in the capital came in at 0.8%, sitting far below other regions.
Therefore, when we were looking for UK hotspots (and judging a region based on its growth), Greater London tends to be ignored due to its lower annual growth. However, it’s important to stress that the area is still immensely popular and continues to demand attention from local property seekers and international buyers alike.
So, while the cost of entry to the London property market is higher than other parts of the UK, you are still likely to make a good turnover on a London property due to the massive demand and pulling power that the capital still command despite the rise in remote working.