The seaside town of Ryde, on the Isle of Wight, has been named as Britain’s property hotspot of 2018, with house prices rising by more than 10 per cent.
Ryde – where the average house costs £242,016 – was the town where average home values rose by the most this year, according to property website Zoopla, which calculates that the total value of Britain’s homes grew by £83billion to reach £8.29trillion.
While a typical property in Ryde rose in value by 10.24 per cent, adding £22,500 to the cost of buying it, the average UK home’s value climbed by a far lower £2,860, Zoopla’s figures showed.
Overall UK house price inflation has eased this year, making it the first in which the rising cost of buying a home has not dramatically outstripped wages since 2012.
Britain’s top ten property hotspots of 2018: Zoopla used its property values data to work out which towns saw the biggest gains
The next biggest gain was seen in Smethwick, close to Birmingham, in the West Midlands, up 9.67 per cent to £163,627.
It was followed by Diss, in Norfolk, up 7.89 per cent to £11,486, and Broadstairs, in Kent, up 7.63 per cent to £311,486.
The property website used its values data, which draws on sold prices, to calculate how different parts of Britain fared.
Overall, property values rose 1.02 per cent this year, said Zoopla, but the UK’s nations and regions saw big variations in house price inflation.
In Scotland, property values rose by 6.43 per cent, while in Wales they climbed 3.98 per cent, but in England gains were a marginal 0.58 per cent.
The Isle of Wight seaside town of Ryde is home to a picturesque harbour and was named Britain’s top property hotspot of 2018, by Zoopla
Zoopla said that the gentle uplift had come in the face of worries over Brexit, which is affecting some parts of the country more than others, particularly London and the commuter belt.
Buyers in the capital and South East also face the difficult task of being able to afford near-record high house prices and homes that are almost as expensive as they have ever been when compared to wages.
London saw property values drop 1.67 per cent to an average of £653,587, according to Zoopla.
Meanwhile, the East of England saw a 0.5 per cent fall to £357,952, but the South East and South West both saw 0.38 per cent rises to £409,923 and £307,693, respectively.
| Ranking | Town | Current average value | % increase in value since January 2018 |
|---|---|---|---|
| 1 | Ryde, Isle Of Wight | £242,016 | 10.24% |
| 2 | Smethwick, West Midlands | £163,627 | 9.67% |
| 3 | Diss, Norfolk | £311,486 | 7.89% |
| 4 | Broadstairs, Kent | £333,212 | 7.63% |
| 5 | Pontypool, Torfaen | £162,319 | 7.52% |
| 6 | Crook, County Durham | £120,792 | 7.13% |
| 7 | Torquay, Devon | £244,414 | 7.05% |
| 8 | Driffield, East Riding Of Yorkshire | £209,406 | 6.93% |
| 9 | Brighouse, West Yorkshire | £180,739 | 6.75% |
| 10 | Motherwell, North Lanarkshire | £146,307 | 6.74% |
| Source: Zoopla December 2018 | |||
| Ranking | Town | Current average value | % increase in value since January 2018 |
|---|---|---|---|
| 1 | Alnwick, Northumberland | £238,802 | -6.58% |
| 2 | Biggleswade, Bedfordshire | £329,206 | -6.49% |
| 3 | Nantwich, Cheshire | £276,647 | -5.60% |
| 4 | Eastleigh, Hampshire | £337,784 | -5.19% |
| 5 | Hebburn, Tyne & Wear | £135,835 | -4.88% |
| 6 | Bideford, Devon | £256,958 | -4.63% |
| 7 | Bushey, Hertfordshire | £595,179 | -4.57% |
| 8 | Batley, West Yorkshire | £139,799 | -4.51% |
| 9 | Towcester, Northamptonshire | £367,669 | -4.51% |
| 10 | Kirkcaldy, Fife | £143,296 | -4.49% |
| Source: Zoopla December 2018 | |||
Richard Donnell, insight director at Zoopla said: ‘Values in London have grown significantly since 2010 but multiple tax changes and affordability pressures are resulting in values falling back.
‘In contrast, affordability levels remain attractive in many areas outside of southern England, and on the back of rising employment and low mortgage rates we see values outperforming the rest of the country, a trend we expect to continue into 2019.’
Alnwick saw the biggest fall in property values. Alnwick Castle is the the Northumberland town’s most famous landmark and has been used in some of the Harry Potter films
The best performing English region was the East Midlands, where prices rose by 2.91 per cent to an average of £220,746.
House prices fell by the most in Alnwick, Northumberland, where they dropped 6.58 per cent to £238,802. The market town is home to the famous Alnwick Castle, which has been used for parts of the wizard school Hogwarts in some of the Harry Potter films.
It was followed by Biggleswade, in Bedfordshire, with a 6.49 per cent decline to an average of £329,206, and Nantwich, in Cheshire, with a 5.6 per cent fall to £276,647.
| Ranking | Region | Current average value | % increase in value since January 2018 |
|---|---|---|---|
| 1 | Scotland | £195,739 | 6.43% |
| 2 | Wales | £192,362 | 3.98% |
| 3 | East Midlands | £220,746 | 2.91% |
| 4 | North East England | £190,242 | 1.92% |
| 5 | Yorkshire and The Humber | £179,809 | 1.64% |
| 6 | West Midlands | £230,823 | 1.60% |
| 7 | North West England | £195,897 | 0.45% |
| 8 | South West England | £307,693 | 0.38% |
| 9 | South East England | £409,923 | 0.38% |
| 10 | East of England | £357,952 | -0.50% |
| 11 | London | £653,587 | -1.67% |
| Source: Zoopla December 2018 | |||
Tricky times for the property market have been forecast for 2019, with prospective buyers concerned by the ramifications of a chaotic no-deal Brexit for house prices and the economy – and constrained by the high cost of buying a home.
However, some have suggested a potential bounce may come if a Brexit deal is negotiated and that this winter could be a good time to buy for those eager to negotiate on price.
Britain’s biggest mortgage lender Halifax forecast house prices to rise between 2 and 4 per cent next year.
Russell Galley, managing director at Halifax said: ‘Looking ahead, aside from the obvious political and economic uncertainty, the biggest issue for the housing market in 2019 will be the degree to which mortgage payment affordability changes.
‘Average pay growth is likely to gather pace but, with a further interest rate increase also predicted, house prices are unlikely to be pushed significantly in either direction.
‘Despite current political upheaval, and on the basis that it is still most likely that the UK exits the EU with a form of withdrawal agreement and transition period, we expect annual house price growth nationally to be in the range of 2% to 4% by the end of 2019.
‘This is slightly stronger than 2018, but still fairly subdued by modern comparison. However, the uncertainty around how Brexit plays out means there are risks to both sides of our forecast.