Towns and cities with the strongest house price growth saw their average property value increase by more than £50,000 (+15.2%) over the last year (up to November 2022), according to new data from Halifax.
York saw the highest property price inflation of any town or city in in England in Wales during 2022, growing by +23.1% (£69,648) over the course of the last year. Since March 2020, average house prices in the historic city have risen by +41.9% from £261,183 to £370,639 (£109,457).
Woking, with its good links to central London, saw the biggest increase of any town or city in cash terms in 2022. The cost of buying a home in the desirable commuter town leapt from £493,299 in 2021 to £586,925 in November 2022, an increase of £93,626 (+19.0%).
London no longer calling?
While house prices in London have increased at a slower pace (+7.2%) than other parts of the UK, prices in the capital are still comfortably the most expensive in the country at £596,667.
No London boroughs appeared in the top growth areas for year-on-year house price increases. The popular residential district of Islington saw a rise of only +0.4% over the year, among the lowest in the country. However, properties in the area still had a large average price tag of £712,843.
Kim Kinnaird, Mortgages Director, Halifax, said: “Overall 2022 was another year of rapid house price growth for most areas in the UK. And unlike many years in the past, the list isn’t dominated by towns and cities in the south east.
“Nowhere is that more the case than in the cathedral city of York, which saw the highest property price inflation across England and Wales this year, rising by over a fifth. While existing homeowners will welcome the increased value of their home, such a jump makes it much more challenging for those looking to step onto the property ladder or move into the city.
“While London still has some of the highest property prices in the country, it recorded comparatively modest house price inflation over the last 12 months. This is partly due to pandemic-driven shifts in housing preferences as buyers sought bigger properties further from urban centres.
“We can see this clearly in commuter towns such as Woking, Chelmsford and Hove, which – with their more diverse range of properties perhaps offering better value – recorded much bigger increases over the last year.”
Wales and the Midlands climb the growth ladder
Swansea recorded the highest rate of house price growth of any town or city across Wales, up by +17.5% (£39,450). Across the nation, prices were up by £20,669 (+8.7%) over the last year.
Elsewhere towns and cities in both East and West Midlands also saw significant growth – such as Kettering (+15.9% to £326,895), Derby (+15.8% to £277,491), Wellingborough (+15.5% to £306,985) and Birmingham (+13.8% growth to £269,385).
Across the UK as a whole, while prices are expected to fall next year, it’s important to look at this in context given the market has seen some of the biggest house price increases on record over the last few years, rising by +26% (£80,777) between March 2020 and November 2022.
