Luton is rapidly becoming one of the most desirable places to live in the UK, with house prices soaring more than anywhere in the UK over the past year. According to new research by Halifax, the average house price in the Bedfordshire town went up 19.4% in 2016 compared to the previous year, increasing from […]
Luton is rapidly becoming one of the most desirable places to live in the UK, with house prices soaring more than anywhere in the UK over the past year.
According to new research by Halifax, the average house price in the Bedfordshire town went up 19.4% in 2016 compared to the previous year, increasing from £214,934 to £256,636. This is more double the 7.5% increase in the UK as a whole.
Despite previously being voted one of the worst places to live in the UK, Luton’s transport links and easy proximity to London have made it popular with commuters looking for cheaper prices outside of the capital.
The outer London borough of Barking and Dagenham experienced the second biggest rise in average house prices with an increase of 18.6%. Dunstable – Luton’s near neighbour – completes the top three with a 17.9% rise in the past year.
All 10 top performers are in London and the South East. Basildon (17.2%), Chatham (17.1%), Tower Hamlets (15.8%), Watford (15.3%) and Basingstoke (15.1%) also all recorded price rises that were at least double the national average.
A small number of towns recorded declines in house prices in 2016. By far the most significant fall was in Aberdeen (-6.9%) in Scotland.
There were also marginal price decreases in a number of other towns. In Scotland – Falkirk (-1.1%) and Inverness (-0.9%), in Northern Ireland – Bangor (-1.7%) and Londonderry (-0.4%) and northern England – Blackpool (-0.5%) and Stockton on Tees (-0.1%). Many of these areas are suffering from relatively weak employment and economic conditions, which continue to constrain local housing demand.
Martin Ellis, housing economist at Halifax, said: “Most of the areas that have seen the biggest house price rises during 2016 are either within close commuting distance of the capital or in outer London. Demand in these areas has risen as substantial property price rises in central London over the last few years have caused increasing numbers of people to seek property in more affordable areas.
“A few towns have experienced price falls, with the biggest in Aberdeen. On the north east coast of Scotland, it is highly dependent on the North Sea oil and gas sector. The substantial fall in oil prices in the past couple of years has hit the industry hard with adverse impact on demand for homes in the area. Price declines elsewhere have been modest.”
Towns with biggest increase in average house prices in 2016
| Town/Area | Region | Average House Price (2015) | Average House Price (2016) | Change |
| Luton | South East | £214,934 | £256,636 | 19.4% |
| Barking And Dagenham | Greater London | £250,283 | £296,946 | 18.6% |
| Dunstable | South East | £215,191 | £253,799 | 17.9% |
| Basildon | South East | £220,156 | £258,068 | 17.2% |
| Chatham | South East | £202,772 | £237,545 | 17.1% |
| Tower Hamlets | Greater London | £355,298 | £411,495 | 15.8% |
| Watford | South East | £362,734 | £418,080 | 15.3% |
| Basingstoke | South East | £263,821 | £303,541 | 15.1% |
| Slough | South East | £340,575 | £390,560 | 14.7% |
| Redbridge | Greater London | £319,522 | £365,438 | 14.4% |
| United Kingdom | £230,706 | £247,933 | 7.5% |
Source: Halifax
Towns with biggest fall/smallest rise in average house prices, 2015-2016
| Town/Area | Region | Average House Price (2015) | Average House Price (2016) | Change |
| Aberdeen | Scotland | £218,442 | £203,425 | -6.9% |
| Bangor (Co Down) | Northern Ireland | £157,213 | £154,613 | -1.7% |
| Falkirk | Scotland | £142,802 | £141,182 | -1.1% |
| Inverness | Scotland | £181,763 | £180,056 | -0.9% |
| Blackpool | North West | £124,568 | £123,947 | -0.5% |
| Londonderry | Northern Ireland | £117,223 | £116,766 | -0.4% |
| Stockton On Tees | North | £152,344 | £152,243 | -0.1% |
| Liverpool | North West | £156,561 | £156,828 | 0.2% |
| Wolverhampton | West Midlands | £173,114 | £173,761 | 0.4% |
| Grimsby | Yorkshire & the Humber | £142,430 | £143,141 | 0.5% |
| United Kingdom | £230,706 | £247,933 | 7.5% |
