New analysis by Barclays Mortgages has revealed that while the national housing market shows signs of cooling, individual postcodes around the UK are bucking the trend and experiencing sharper house price growth.
The latest Government figures show a slowdown in house price growth, with September 2017 showing just a 0.4% increase, suggesting the housing market is continuing to cool post-EU referendum.
Areas of Birmingham and Edinburgh See Fastest Growth
However,
Barclays’ Postcode Property Index shows that property prices in B16 (Ladywood) in Birmingham, which benefits from an abundance of restaurants and artisan coffee shops, has seen the fastest house price growth over the year. Property prices have risen to an average of £171,121 in the past 12 months, an increase of 17% – significantly more than the 5% increase experienced by the city as a whole.
In second place is the EH2 area of Edinburgh, where property values have risen on average by nearly £50,000, or 14%, in just one year. This is perhaps unsurprising given that Edinburgh was recently named as Scotland’s economic powerhouse by the Federation of Small Businesses.
UK’s Capital Cities
However, the Index found that the UK’s other capital cities have fared less well in the past year. Following a decade of significant property price growth in London, the average increase was down to just 2% in the last year.
Belfast’s property has also struggled in the past year, although the postcode BT5 has seen house price growth significantly outperform that of wider city. With more affordable housing, a number of good schools in the area and its position within a commuter belt supported by good transport links, the price growth is likely as a result of more young families moving to the area.
The Welsh capital, Cardiff, has seen steady, if not exceptional, house growth in the past year. The area of Adamsdown in particular has seen healthy growth, with the average price of a property in the postcode now over £170,000. The area has seen significant redevelopment in recent years, partly to help accommodate the many students who have moved to the area to study at the University of South Wales which is located there, and this will have contributed significantly to its position in the Postcode Property Index.
“It is fascinating to see the individual postcodes where property prices are growing at a very fast pace, particularly when they are significantly outstripping the city’s average growth,” said Craig Calder, Director of Barclays Mortgages. “It demonstrates how changeable the property market currently is, not just around the UK but within each city.”
Aberdeen Sees Biggest House Price Fall
The biggest fall in average house prices has apparently been seen in Aberdeen, where prices have fallen 10% since the Brexit vote.
The analysis, by lending platform Lendy, found that average house prices in the city were £164,000 in June 2017, which is significantly below the £182,000 recorded in June 2016 when the UK held its EU referendum. Average house prices in Aberdeen apparently peaked in September 2014, when they reached £199,000.
According to
Lendy, the decline is likely to due to concerns over Scotland’s post-Brexit future, together with the pressure of low global oil prices on Aberdeen’s heavily oil-dependent economy.
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