Analysis by Post Office Money revealed the borough of Nuneaton and Bedworth in Warwickshire experienced house prices rises of 11% between the beginning and end of 2019.
But the area also had the added attraction of being affordable to the largest percentage of first-time buyers. Indeed, the Post Office analysis revealed more than three-quarters of buyers taking their first step on the property ladder could afford a property here.
Stockport in Greater Manchester and Leicester followed hot on the heels of Nuneaton for bumper house prices rises. Both experienced a 10% increase in 2019.
While Stockport with its average property price of £225,000 proved affordable for less than a third of first-time buyers, Leicester looked more attractive with 70% being able to get onto the ladder here.
These double digit house price rises bucked the national trend, according to Post Office Money, with growth soaring above the national average of 0.9%.
20-year trends
Post Office Money also analysed the growth of house prices over the last 20 years to help inform buy-to-let investors.
It found Brighton experienced the biggest gains over the last two decades, with a 418% increase in the average house price. Sadly, this put it out reach to all first-time buyers.
Yet, in the last year, Brighton only experienced a 1% increase in house prices which is a far cry from the double digit numbers seen in Nuneaton.
Aspiring investors
Post Office Money has provided this overview of the UK property market to help aspiring buy-to-let investors find the best locations to consider when making a purchase.
It used Office for National Statistics (ONS) data to look at house prices and first-time buyer affordability in 80 locations of the UK.
Chrysanthy Pispinis of Post Office Money explained rental income and the opportunity for capital growth should be fully explored in the mid to long term when deliberating over the best locations in which to begin your property search.
“The market as a whole may have slowed in the last year but many locations, especially in the Midlands and North, are continuing to see significant house price growth,” she said.
“These properties are potentially good mid-term investments, particularly as they sit in locations that continue to be affordable, even for first-time buyers, which can be a great indication of future growth hotspots.”
Property investing tips
With the number of households renting rising significantly between 2007 and 2017, Post Office Money said buy-to-let investors should be encouraged there is still a real need for rental properties.
It urged anyone coming into this market with the aim of investing for the long term to ‘know your area’ and check it has benefited from market growth recently.
Look at what’s happening in the future, as well as looking at the past, by investigating if any new schools or big businesses are planning moves there.
It’s also worth looking at how fast the market is likely to move in this area by checking the rate of sale. This provides a good indicator of how the market is performing and will help you understand how quickly you will need to move to secure your property.
Biggest increase in house prices in the last year (Source: Post Office Money)
| County | City | Average house price | 1-year change |
% Affordable for FTBs |
| Warwickshire | Nuneaton and Bedworth | £179,995 | +11% | 76% |
| Greater Manchester | Stockport | £225,000 | +10% | 31% |
| Leicestershire | Leicester | £172,000 | +10% | 70% |
| Glamorgan | Cardiff | £202,000 | +9% | 31% |
| West Midlands | Sandwell | £148,950 | +8% | 92% |
| Scotland | Edinburgh | £261,812 | +8% | 6% |
| West Midlands | Coventry | £179,950 | +8% | 69% |
| West Midlands | Wolverhampton | £149,995 | +7% | 88% |
| South Yorkshire | Sheffield | £159,995 | +7% | 67% |
| Cambridgeshire | Birmingham | £175,000 | +6% | 69% |
Biggest increase in house prices in the last 20 years (Source: Post Office Money)
| County | City | Average house price | 1-year change |
20-year change | % Affordable for FTBs |
| East Sussex | Brighton and Hove | £352,500 | +1% | +418% | 0% |
| Essex | Southend-on-Sea | £280,000 | +5% | +383% | 18% |
| Bedfordshire | Luton | £245,000 | +2% | +380% | 24% |
| London | London | £538,132 | +0% | +369% | 19% |
| Hertfordshire | Watford | £365,000 | 0% | +365% | 0% |
| Cambridgeshire | Cambridge | £427,500 | -1% | +360% | 0% |
| Buckinghamshire | Milton Keynes | £283,000 | +5% | +349% | 41% |
| Avon | Bristol, City of | £265,000 | +2% | +349% | 7% |
| West Sussex | Worthing | £295,000 | +5% | +337% | 15% |
| Norfolk | Norwich | £190,000 | +2% | +315% | 71% |
