Revealed: The top 30 house price hotspots in 2024 – and guess what, not one of them is south of Watford!

Since the pandemic, when the race for space left families desperate to move from London and the big cities in search of a quieter life, the property market has seen waves of unpredictability.

Where would be the new hotspot for a country or coastal home that offers more space at a lower price tag?

Oxfordshire and the trendy Cotswolds were high on property wish lists, as were the coastal hotspots of Margate, Folkestone and Dover in Kent, plus the staycation hotspots of Devon and Cornwall.

With hybrid working patterns and a manageable commute, a rural or coastal lifestyle was suddenly not just a dream, but a real possibility.

Yet, according to real estate agents, there has been a remarkable shift in purchasing behavior this year. And it’s one that has seen the south coast suffer from typically robust property prices.

It’s a trend mirrored in the capital’s most affluent areas – Kensington and Chelsea – where property prices have fallen as much as 8.6 percent in value.

Because growing families, feeling the pressure of the cost of living and the now hefty budget taxes, are now packing their things and moving north in search of space. And even across the border to Scotland.

Tom Stewart-Moore, head of rural sales in Scotland for estate agent Knight Frank, says he has seen families moving from popular rural and coastal properties such as Cornwall to Scotland because it is quieter there.

It’s also a big draw for those who can work remotely and buy a property with land, enjoy an outdoor lifestyle, be near good schools and easily travel to cities like Edinburgh or Glasgow for culture, restaurants and shops.

This lure of English buyers to Scotland is confirmed by exclusive analysis of house price figures from the Office for National Statistics (ONS) and data from estate agent Hamptons.

The data shows that if you own a home in Scotland or the North West, it is likely to have risen in value – while owners in London and the South East have seen property prices fall significantly by 2024.

To calculate the figures, Hamptons compared the average transaction price per municipal area between January and September with the same period in 2023.

Because there are so few transactions each month in some areas, the nine-month average transaction price was the most reliable way to measure prices in each local government area.

Here, Money Mail looks at the year’s house price hotspots – and the biggest losers – plus locations expected to rise in 2025.

Scotland attracts new buyers

First place in terms of percentage growth this year goes to West Dunbartonshire in Scotland. Properties in this region have risen by an average of 6.1 per cent – ​​or by £7,940 to £138,310.

The municipality borders Glasgow to the northwest and is just a 40-minute drive from the city center.

Mr Stewart-Moore says West Dunbartonshire offers the best of both worlds: ‘The area is very close to Glasgow so it will be a big draw for professional couples and families looking for a home on the west coast.

If the buyer is coming from London or further afield, there is good accessibility thanks to Glasgow Airport.

But you are also close to the national park and coastline. There is something for everyone, whether it is walking, sailing or sea kayaking.’

West Dunbartonshire is home to the freshwater Loch Lomond, Balloch Castle and The Trossachs National Park.

The second best performing area is Inverclyde, which is also within traveling distance of Glasgow and just south of West Dunbartonshire. Houses in this coastal area rose by 5.4 per cent this year to £127,370.

Buyers will be treated to stunning coastal vistas and there are a number of heritage activities such as country parks and castles to visit.

In fact, nine of the ten fastest growing hotspots in Britain are in Scotland – and 13 of the top 20.

After Inverclyde, it was Renfrewshire, Clackmannanshire and North Lanarkshire that saw the best growth.

Properties in Glasgow also did well this year as professionals moved north from the city. It ranks sixth in the top hotspots as it has seen a rise of 4.6 per cent, bringing the average house price to £178,920.

Houses in Scotland’s second city are much more affordable than those in the capital Edinburgh, where the average home costs buyers €324,760.

Aneisha Beveridge, head of research at Hamptons, explains: ‘Areas that were slow to recover after the 2008 financial crisis have been catching up in recent years.

‘This is especially true in Scotland, where average prices have risen almost twice as fast as the national average.’

In addition, there are many special properties, says Mr Stewart-Moore, such as beautiful waterfront homes: ‘These are simply a must. They always sell like hotcakes.”

The abundance of land is a positive for Scotland, he adds, as houses of 30, 40 or even 50 hectares are quite common.

West Lancashire is a Scottish trend

The only place in the top ten house prices that is not in Scotland is West Lancashire. It comes in this year as the tenth fastest growing region as house prices in the area are 4.1 percent higher than last year’s prices, more than any other area in England.

Homes between January and September averaged £237,240.

Victoria Tye, owner of Victoria Estates & Property Management in Burscough, West Lancashire, has seen an influx of families since the pandemic which has driven up previously modest prices.

“Lancashire is quite rural, but you’re also close to transport links and the motorway,” she says. ‘Plus, there are many good schools in the area.’

Ms Tye says most customers are families or first-time buyers, plus a slew of cash buyers who are downsizing.

The North West has a few other regions in the top 20 hotspots, including Cheshire East, Cumberland and Bolton.

Only one of the top 20 growth spots was in the Midlands and none were further south in England.

The north-south divide has widened this year. In 2023, West Oxfordshire had a stunning growth of 6.5 percent and was the 12th hottest place; this year it didn’t even make the top 50.

Southern coastal towns were hit hard

The biggest falls in property prices are in the south or east of England.

Homes in the country’s most expensive regions have not fared well against the backdrop of high interest rates, making mortgages on expensive properties more expensive.

Houses in Kensington and Chelsea had fallen in value by 8.6 per cent, or £117,810, making them worth £1,246,520.

This affluent part of the capital was also the worst performing area last year, when it recorded a staggering double-digit decline of 10 per cent.

Next are Hammersmith and Fulham, where houses fell by 7.4 per cent, while the city of Westminster saw a fall of 6.9 per cent.

Ms Beveridge says low transaction numbers in some of the capital’s most sought-after postcodes can make it difficult to get a good idea of ​​the average price, but it has certainly been a slow year.

Most of the remaining top ten worst performing areas for house prices

are southern coastal towns. Dover, Thanet (home to the popular seaside resort of Margate) and Adur, which borders Brighton, are next on the list.

Dover, which ranks fourth in the biggest house price falls, has seen a fall of £20,590, or 6.8 per cent – ​​and houses now typically cost £283,190.

“In areas that were popular during the pandemic, prices have fallen,” Ms Beveridge said.

The race for space and the mass exodus from major cities during the height of the Covid era have yet to be curbed.

But instead of moving to traditional rural areas in the south, such as Devon or Kent, it appears that people are moving north.

Real estate prices will rise in 2025

Home prices hit a record high just days ago, Halifax data shows, but the percentage growth seen by local governments this year is weaker than in 2023.

Last year, properties in the top ten house price hotspots all experienced growth of at least 6.6 percent. This year, the top spot saw growth of just 6.1 percent, while the tenth fastest grew just 4.1 percent.

Ms Beveridge said: ‘Regions that experienced a substantial decline in 2023 are starting to show signs of recovery, while previously high-performing local areas have seen a slowdown in price growth.’

The Office for Budget Responsibility expects house prices to rise by just 1.1 percent in 2025, but other forecasts are more optimistic.

Estate agents Savills predict a 4 per cent growth in property values ​​next year, up from 3 per cent this year, and 23.4 per cent in 2029. This means houses will rise by £84,000 in five years, according to their calculations.

Experts say falling mortgage rates will boost the real estate market.

The average two-year residential mortgage fell from a peak of 6.86 percent in July 2023 to 5.48 percent yesterday, while the average five-year mortgage was at 5.25 percent yesterday, down from a peak of 6 .51 percent in October 2022.

Large cuts to the base rate were previously expected for 2025, but markets are now predicting only three.

David Hollingworth, of estate agent London & Country Mortgages, said: ‘House prices are so linked to mortgage rates and they have improved significantly this year.

We will see base rates fall next year – even if not as quickly as people previously expected – which will have a positive impact on buyer confidence. This will therefore have a positive effect on house prices.’

Levans@dailymail.co.uk