Average house price tops £100,000

For the first time, there are now no towns in the UK where the average price is below £100,000. Five years ago, there were more than 200 towns with an average price below £100,000, according to the Halifax House Price Index.

Lochgelly in Fife was the only town with an average price below £100,000 at the end of 2006. Price rises since then have taken the average price in Lochgelly to £104,738 in 2007 Quarter 1. Nonetheless, Lochgelly remains the most affordable town – out of the 489 surveyed – in the UK.

All top ten towns in Northern Ireland ……

The ten towns that have seen the biggest house price rises during the last 12 months are all in Northern Ireland. This is the first time that all the towns in the top ten have all been in the same area of the UK.

Craigavon, a new town, and Newtownards in Northern Ireland are the UK's top property hotspots with both towns recording a 55% rise in prices over the past year. Average prices in Craigavon are up from £118,551 in 2006 Quarter 1 to £183,795 in 2007 Quarter 1. Average prices in Newtownards are up from £127,590 to £197,134.

Average price in Northern Ireland rises above £200,000 ……

The average price in Northern Ireland broke through the £200,000 barrier for the first time in 2007 Q1 to £206,495. Northern Ireland is now one of the most expensive parts of the UK; only London, the South East and the South West have higher average house prices. Two years ago, Scotland was the only part of the UK with lower average house prices than Northern Ireland.

A strong local economy, high levels of immigration and high demand for properties from second homebuyers and buy-to-let investors in the Republic of Ireland have significantly boosted property prices in Northern Ireland over the past few years. As a result, the average house price in Northern Ireland has increased by 76% since 2005 Q1, far outstripping the UK average gain of 18%.

House prices rise most rapidly in Scotland in 2007 Q1 ……

House prices increased in all regions during 2007 Q1. The biggest price rises were in Scotland (7.5%), South West (5.4%) and Wales (4.9%). The smallest increases were in the East Midlands (0.2%) and Yorkshire and the Humber (0.6%).

Average price in North West breaks £150,000 barrier ……

The average price in the North West rose above £150,000 for the first time in 2007 Q1 to £151,341. Scotland, Yorkshire & the Humber and the North are the only parts of the UK where average prices remain below £150,000.

North/south divide re-emerges in England……

A north/south divide in England has re-emerged over the past year with the most rapid price rises in London, the South West and the South East as house price inflation has accelerated in these regions. By contrast, house price inflation has eased across northern England with house price inflation in single digits in the three northern English regions over the past 12 months.

London has recorded the biggest price rises in England over the past year…..

House prices have risen most rapidly in Northern Ireland (37.0%) and Scotland (22.4%) over the past year. Greater London (14.9%) has recorded the biggest increase in prices in England. The smallest price rises have been in the North (5.6%) and the East Midlands (5.8%).

Commenting, Martin Ellis, chief economist, said: "House prices continue to rise in a tight market but there are emerging signs that pressure on householders' finances, partly due to the rise in interest rates since last August, is dampening housing demand. Overall, house prices increased by 2.8% in 2007 Q1, well below the 4.2% rise in 2006 Q4. There is also evidence of reduced market activity.

We expect the higher level of interest rates, negative real earnings growth and above inflation council tax bill increases to lead to slower house price growth over the coming months. Sound economic fundamentals and an ongoing shortage of housing supply will, however, continue to support house prices."