Do You Live In One Of The UK's Fastest Growing Areas For House Prices?
We compared average costs to reveal where property prices have grown the most in 10 years.
According to our research, house prices have soared almost 60% in the last decade, from £172,000 just over 10 years ago to an average of £275,000 today. Every part of the country has seen prices rise by at least 15% in the same period.
This story of house price growth is not uniform across England and Wales. In some areas, property appreciation has occurred almost nine times quicker than in the slowest growing areas, indicating a significant difference in the behaviour of property markets across regions of the UK.
Which region has seen the most significant rise in property prices?
We analysed ONS house price data from Q1 2010 to Q4 2021 to find out which regions and areas of the UK have seen the most dramatic property price growth in the last eleven years. Our results show that the five regions with the largest rises are:
| Regions | Average House Price in Q1 2010 | Average House Price in Q4 2021 | % House Price Increase |
| London | £265,000 | £512,000 | 93% |
| East of England | £179,000 | £324,000 | 81% |
| South East | £210,000 | £360,000 | 71% |
| East Midlands | £136,000 | £220,000 | 62% |
| South West | £178,000 | £287,000 | 61% |
It's no surprise that London has seen the most pronounced increase in house valuations, with the average house in the capital costing 42% more than the average in the next most expensive region, the South East.
London boroughs with the highest house price increase
Given the regional statistics, it's unsurprising that 80% of the twenty local councils which have seen the highest property price increase are London boroughs.
Every London borough has seen a notable boost in property prices, with every council experiencing at least a 66% climb. However, thirteen boroughs, mainly in Outer London, have witnessed a doubling in average house prices, the ten highest being:
| Borough | Average House Price in Q1 2010 | Average House Price in Q4 2021 | % House Price Increase |
| Waltham Forest | £220,000 | £505,000 | 130% |
| Barking and Dagenham | £160,000 | £338,500 | 112% |
| Lewisham | £220,000 | £465,000 | 111% |
| Newham | £205,000 | £428,000 | 109% |
| Redbridge | £235,000 | £490,000 | 109% |
| Haringey | £266,000 | £553,000 | 108% |
| Merton | £260,000 | £540,000 | 108% |
| Hackney | £280,000 | £580,000 | 108% |
| Harrow | £265,000 | £547,000 | 106% |
| Enfield | £227,000 | £460,000 | 103% |
Terraced and semi-detached houses have seen notable increases in value, with the former appreciating by more than double across London and the latter costing an average of 93% more now than they did in 2010.
The rise in the price of detached houses has been comparatively gentle in the capital, where, in areas like Newham, prices have increased by as little as 32%.
That being said, the detached house market has also seen the most dramatic upswing in some areas. In Haringey and Southwark, detached houses have increased in value by over 150%, and in Hammersmith, prices have almost quadrupled.
Increasing house prices outside of London
Outside of London, the cities which have seen the highest property price increases are:
| City | Average House Price in Q1 2010 | Average House Price in Q4 2021 | % House Price Increase |
| Bristol | £165,000 | £317,000 | 92% |
| St Albans | £312,000 | £593,000 | 90% |
| Canterbury | £182,000 | £340,000 | 87% |
| Brighton & Hove | £220,000 | £405,000 | 84% |
| Cambridge | £247,000 | £450,000 | 83% |
| Leicester | £120,000 | £215,000 | 79% |
| Chelmsford | £210,000 | £375,000 | 79% |
| Bath | £210,000 | £370,000 | 76% |
| Salford | £115,000 | £202,000 | 75% |
| Oxford | £245,000 | £427,000 | 74% |
Smaller areas on the outskirts of London have also seen significant surges in property valuations. Hertsmere and Epping Forest have both doubled in price as areas, with Thurrock, Slough, and Dartford not far behind.
This suggests that while London has been the epicentre of property price increase, the effects have spread well beyond just the London Boroughs themselves. Buyers are now paying more than ever to live in towns close to the capital, and in many of these areas, the price increase rate reflects that of places closer to Central London.
What has caused the nationwide increase in house prices?
Several factors explain the trend:
Low-interest rates
The drastic lowering of UK interest rates, which have fallen to 0.5% from 15% in 1992, is an important reason for increased house prices. Low-interest rates make an investment in property appealing because they provide a substantial rate of return in comparison to other investment options.
Further, lower interest rates make buying property more attractive than renting in many situations. Given the significance of the investment made when you decide to purchase a house, it's no surprise that interest rates significantly impact buying patterns and house prices.
Increased demand for property ownership and a decline in houses being built
In many popular areas, particularly cities, there isn't the space to keep building new properties in accordance with demand. Further away from cities, environmental considerations and local desire to protect greenbelt land have frequently led to stunted development plans.
Existing homeowners are also interested in protecting their property's price, bolstering opposition to renewed property construction.
As the UK population grows, demand for affordable housing across the country continues to increase. But the volume of houses being built in the UK is not keeping up with the pace of demand, thus creating a situation where an increasing number of people are searching for ownership in a market that isn't keeping pace with demand.
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