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Historic towns and commuter hotspots lead UK house price growth

New research by eXp UK reveals that England’s historic towns and commuter belt areas have seen the highest rates of house price growth in the past year. The appetite for homes in these areas has pushed prices up by more than 3%, while commuter hotspots have experienced a 2.9% increase, reflecting the shifting housing preferences of buyers in the current market.

The study, which analysed house price growth across different types of towns, highlights where property values have surged and where the market has remained stagnant.

Historic towns see the greatest price increases
England’s historic towns, including Lincoln, York, and Canterbury, have recorded the most impressive house price growth over the past 12 months. Prices in these areas increased by 3.2%, bringing the average property value to £322,801. Historic towns have not only led in growth but are now also the most expensive type of town to live in across England.

Adam Day, Head of eXp UK, explained the factors driving this growth: “The biggest influence on house prices is supply and demand, and that’s why our historic towns have seen a far stronger rate of house price growth over the last year. They are largely restricted in terms of the properties reaching the market to satisfy buyer appetites.”

The limited availability of homes in historic towns has contributed to rising prices, making these areas particularly attractive to buyers seeking the charm and heritage of these towns, along with their limited housing stock.

Commuter towns benefit from remote working trends
Commuter towns, such as St. Albans, Wolverhampton, and Bury, have also experienced strong price growth, with a 2.9% increase in the past year. The average house price in commuter towns now stands at £268,303. The rise in remote working, allowing people to live further from their workplace, has driven up demand in these areas as more homebuyers opt for the balance of affordability and proximity to major cities.

Day commented on the trend, saying, “Less and less people are required to be in the office every day, and are, therefore, less tethered to living in major cities. Instead, they’re moving out to the commuter belt, increasing market demand and, therefore, pushing prices up.”

As flexible working becomes a permanent fixture for many, these commuter towns continue to attract those looking for more space and better value outside of city centres.

New towns see static growth
In contrast to the booming historic and commuter towns, England’s new towns have seen little to no price growth over the past year. New towns like Stevenage, Warrington, and Basildon recorded an average house price increase of just £26, leaving prices stagnant at £325,245.

The abundance of new-build properties in these areas is a likely factor in the static market, as the higher premiums associated with new builds have made these homes less affordable in a period of elevated mortgage rates.

Day noted, “New towns have plenty of scope for development, so even as demand rises, there is always plenty of stock to satisfy it, which is one reason why prices have remained static over the past year. Not to mention that many new towns will have a higher proportion of new-build stock, which tends to command a hefty premium versus existing homes.”

A positive outlook for house prices
Despite variations in price growth across different types of towns, eXp UK’s analysis suggests a brighter future for the housing market as a whole. With economic conditions improving, more homebuyers are expected to enter the market, which could drive further price increases across the board.

Day concluded, “We fully expect prices across the board to rise over the coming months. The nation seems to be finally coming out of what has been a fairly dark economic period for many, and even just a small brightening of the economic mood will be enough for lots of hesitant homebuyers to take a plunge into the market, increasing demand and, therefore, prices.”

As the UK’s economic outlook improves, historic and commuter towns are expected to continue leading the way in house price growth, while new towns may require more time to catch up. For property investors and buyers, these insights offer a clearer picture of where opportunities lie in the evolving housing market.

 

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