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Aberdeen is worst hit

Oil capital suffers biggest fall in home values

Property for saleAberdeen 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

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

*12 Months to November

 

Table 2: 10 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%

Source: Halifax

*12 Months to November



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