Brighton house prices jump 206% in decade, Halifax
Homeowners in locations with the biggest rises in economic activity have seen the value of their property rise by almost £110,000 over a decade.
Property prices in Brighton and Hove increased by 206 per cent in the decade from 1999 to 2009 and the region also saw the fourth biggest increase in the value of economic activity of 63 per cent in this period, data from Halifax have revealed.
Cornwall and the Isles of Scilly, which recorded the second biggest rise in house prices of 198 per cent, was the sixth fastest growing area in terms of economic activity (60 per cent).
Between 1999 and 2009, the value of the typical home in the ten local areas recording the biggest increases in economic activity rose by 145 per cent (£109,269), from an average of £75,222 in 1999 to £184,491 in 2009. These areas include inner west London, Warwickshire, Oxfordshire, Surrey, Dorset, Gwynned, Buckinghamshire and Hampshire.
The research showed house prices have proved more resilient in locations that have performed relatively well economically.
Since 2007, the ten local areas with the largest falls in economic activity – as indicated by the largest percentage point rises in unemployment – have seen house prices fall,on average, by over a quarter. These areas include Belfast, Blackpool, Kingston upon Hull, Gwent Valleys, Hartlepool and Stockton-on-Tees, Darlington; Barnsley, Doncaster and Rotherham, East of Northern Ireland, Central Valleys in Wales and north and north east Lincolnshire.
Martin Ellis, housing economist at Halifax, said: “The marked differences in local economic performance across the UK appear to have had a significant impact on the housing market over the past decade. House price growth has generally been stronger in the areas that have seen the biggest increases in economic activity. The best performing areas have also been the most resilient in terms of house prices during the downturn since 2007.
“Looking forward, the pace at which the UK economy recovers will be a key determinant of the outlook for the UK housing market. Similarly, those areas that perform best in economic terms are likely to fare best in terms of house price movements.”