Towns in Northern Ireland record biggest price rises

Newry in Northern Ireland recorded the biggest increase in house prices across the UK in 2006 with an average rise of 54%, according to the fourth Halifax Estate Agent (HEA) annual survey of UK towns. All of the 10 towns delivering the biggest price increases are in Northern Ireland, making 2006 'Northern Ireland's Year'.

2006 was the first time that Northern Irish towns have dominated the list of 20 towns delivering the biggest house price rises. 2005 was 'Scotland's Year' with nine of the 20 towns experiencing the biggest house price increases north of the border. 2004 was the 'Year of the West' with 13 of the 20 towns recording the biggest house price increases located in western Britain, particularly Wales. 2003 was the 'Year of the North' with towns in northern England dominating the list of top 20 performers.

The rapid rise in house prices in Northern Ireland over the past year partly reflects a strong employment market and high levels of immigration, which have boosted demand. There has also been high demand for properties from second homebuyers and buy-to-let investors in Ireland who have been attracted by the relatively low prices in Northern Ireland. Those towns with good links to the major centres have experienced particularly strong housing market conditions. Newry, for example, has good access to the capitals of both Ireland and Northern Ireland with train journeys of 40 minutes and 75 minutes to Belfast and Dublin respectively.

Only one town remains with an average property price below £100,000.

Lochgelly in Fife - with an average price of £96,925 - is now the only town surveyed with an average price under £100,000. There has been a sharp fall in the number of towns where the average price is below £100,000 in the past few years. In 2003, more than 100 towns had an average price below £100,000.

More than one in three towns has an average price above £200,000.

There has been a significant increase in recent years in the number of towns where the average house price exceeds £200,000 with more than one in three (37%) towns now above this benchmark. This compares with 29% in 2005.

Southern towns are still the most expensive.

Gerrards Cross in Buckinghamshire maintains its position as the most expensive town in the UK with an average price of £724,594. Gerrards Cross is one of five towns with an average price above £500,000. The other four are: Kensington & Chelsea (£695,874), Westminster (£530,262), Weybridge (£526,443) and Sevenoaks (£519,505).

Four of the 20 towns with the biggest house prices gains in 2006 are in the South East.

This is in marked contrast to each of the previous three years when there were no towns in the South East among the 20 towns recording the highest house price growth. Reigate in Surrey and Abingdon in Oxfordshire are the South East's top performers, both recording a 29% increase in house prices in 2006.

Ilkley and Altrincham are the most expensive towns outside the south.

Ilkley in West Yorkshire (£300,574) and Altrincham in Cheshire (£300,312) are also the only non-southern towns with an average house price above £300,000.

Five of the ten most affordable towns in the UK are in Scotland.

Lochgelly in Fife remains the most affordable town in the UK - as in 2003, 2004 and 2005 - to buy a house despite rapid house price inflation over the past few years with an average price of £96,925.

Gosport in Hampshire is the only town in southern England where the average price is below £150,000.

The average house price in Gosport is £137,257. Camborne in Cornwall (£150,402) and South Ockenden in Essex (£153,563) are the next most affordable towns in the south.

Colin Kemp, Managing Director, Halifax Estate Agents, said:

"2006 is Northern Ireland's year with all ten of the towns in the UK delivering the biggest price rises over the past year located there.

There has been a sharp fall in the number of towns where the average price is below £100,000 in the past few years. Lochgelly in Fife is now the only town surveyed with an average price below this level, compared with more than 100 towns in 2003.

The decline in towns with an average price below £100,000 has been counter-balanced by a significant rise in the number of towns where the average house price exceeds £200,000 with more than one in three towns now above this benchmark."