Stoke-on-Trent and Slough will see the biggest rise in property prices in 2024

Stoke-on-Trent saw the biggest spike in property prices in the past year, new data shows.

By 2024, the average cost of a house in Stoke-on-Trent will increase by more than £33,000, or 17.2 per cent, from £193,662 to £227,002.

Slough saw the second biggest increase, with average house prices rising by almost 15 per cent or £64,510 to £497,704, according to Halifax.

It comes after the Berkshire town was recently labeled Britain’s unhappiest place to live.

Oldham saw the third biggest spike in price rises, with the average cost of a house rising from £218,595 in 2023 to £250,546 this year, an increase of over £30,000 or 14.6 per cent.

Bradford, Bolton, Barnsley and Wolverhampton also made the top ten, the data shows.

In Bradford, the average cost of a house rose by more than £26,000, or 13.1 per cent, to £226,261 over the period.

Meanwhile, average property prices in Bolton have risen from £223,231 in 2023 to £252,070 this year, amid a rise of more than £28,800.

In Wolverhampton, the average cost of a house rose by 12.4 per cent or £30,680, from £247,403 to £278,083.

Amanda Bryden, head of mortgages at Halifax, said: ‘Some parts of Britain – including Stoke-on-Trent, Wolverhampton and Dunfermline – have seen notable house price growth this year as buyers may look for more affordable areas where house prices, despite increases, are still below the national average.

‘This trend is causing prices to turn from slowing to growing in some areas, such as Stoke-on-Trent, which was the biggest faller last year but has seen the highest growth rate regionally this year.’

She added, “That story is not happening nationally. The high asking price for London property means that house prices have fallen in several boroughs – perhaps a reflection of the fact that the relatively high cost of property is undermining affordability for buyers, or perhaps what they are willing to pay.

‘Overall, London has a house price-to-earnings ratio of 8.22, making it one of the least affordable places to live in the country, compared to the national ratio of 6.55.’

London dominates for the lowest house price growth

Several London boroughs saw the lowest house price growth in the period, including Ealing, Southwark and Harrow.

London locations include seven of the ten cities with the lowest property price growth.

In Ealing, average property prices fell by £28,596, or 4.9 per cent, to £559,788. Although prices in Ealing have fallen, they remain significantly higher than the national average.

In Southwark, the average cost of a house fell by 4.8 per cent, or £27,878, from £583,203 to £555,325.

While many locations in London were heavily ranked for the lowest house price growth, Huddersfield saw the biggest fall.

The average cost of a home in Huddersfield fell by 6.6 per cent, or £18,514, from £279,012 to £260,498.

Halifax said: ‘This has to be seen in an important context – Huddersfield came top of the table last year, with an average house price increase of 8.7 per cent, meaning that overall, house prices in the area have risen over the last two years have increased. .

Houses on the Wirral, meanwhile, saw the second steepest decline, down £16,753, or 5.4 per cent, from £311,003 to £294,250.

The South-East region is having a hard time

On a regional basis, the Southeast saw the smallest percentage growth in house prices over the period.

Across the South East, average property prices rose by 1.8 per cent, or £7,947, to £448,456, up from £440,509.

In the east of England, the average cost of a house rose by 3.5 per cent or £13,891 to £406,888.

Northern Ireland saw the biggest spike in average property prices, which rose from £203,724 to £225,272. This represented an increase of £21,547, or 10.6 percent.

Average property prices in Yorkshire and the Humber and the West Midlands also both rose by more than £15,000 in the period.

In Scotland, average house prices rose by £13,733, or 5.9 per cent, to £247,094. Meanwhile, the average cost of a home in Wales rose by £13,569 or 5.6 per cent, from £241,628 to £255,197.

Bryden said: ‘Regionally, while the South East has seen solid growth, in places like Basingstoke and Maidstone it continues to lag behind the rest of Britain overall, moving by just +1.8 per cent, compared to +6.3 percent. for Britain in general.

‘As in London, first-time buyers will not find a bargain here as slow growth is likely a result of already high property prices compared to the national average.’

She added: ‘When buying a house there is so much to take into account – it can become overwhelming, with the cost of a home being just one of many things to think about.

‘My advice would be to make yourself a list of everything that is important to you, decide which are the deal breakers and what you are willing to compromise on, and then view houses and visit areas to make a to get a feel for each. place.

‘Be open to everything that is affordable and suits your personal circumstances. You never know where you’ll find a hidden gem that’s just right for you.”

Will changes in stamp duty impact the market?

Stamp duty thresholds, the level at which buyers start paying property purchase tax, will fall in spring 2025.

The new, higher surcharge will apply to purchases of a second home from October 31, 2024.

Stamp duty reductions were introduced in Kwasi Kwarteng’s mini-budget in September 2022 and were intended to be permanent.

However, just two months later, Jeremy Hunt announced in the autumn budget that the property tax cut would be a long holiday.

On April 1, 2025, stamp duty thresholds will therefore return to a lower level.

Interest rates are expected to slowly fall further, which could help borrowers when looking for a mortgage. However, the upcoming changes to the stamp duty threshold already mean that first-time buyers should be in the race to complete before April.

It remains to be seen what changes in stamp duty and interest rates will impact the property market in 2025.