Aberdeen saw the biggest fall in property values among towns and cities across the UK over the past year.

While Britain’s oil capital witnessed a 6.9% slump in prices, satellite towns around London saw increases of up to to a fifth as city workers sought cheaper homes within commuting distance.

Luton recorded the biggest percentage rise with the average home in the Bedfordshire town leaping by 19.4%, according to new research by Halifax.

This is more than two and a half times the 7.5% increase in the UK as a whole. 

The outer London borough of Barking and Dagenham experienced the second biggest rise 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 at least double the national average. (Table 1)

Price falls

A small number of towns recorded declines in house prices in 2016. By far the most significant fall was in Aberdeen (-6.9%).

Falkirk (-1.1%) and Inverness (-0.9%) were also among the biggest losers, along with in Bangor (-1.7%) and Londonderry (-0.4%) in Northern Ireland, and Blackpool (-0.5%) and Stockton on Tees (-0.1%) in northern England.

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.”

Table 1: 10 Towns with biggest increase in average house prices, 2015-2016

^{Source: Halifax}

*12 Months to November

Table 2: 10 Towns with biggest fall/smallest rise in average house prices, 2015-2016

^{Source: Halifax}

*12 Months to November