Montrose is the 2007 property hot spot

Montrose in Angus recorded the biggest house price increase (39%) in 2007, according to Halifax Estate Agents.

Eight of the best ten performing towns are from the opposite ends of Britain – four each from Scotland and the South East. Peterhead, Inverurie and Greenock are the other towns from north of the Border. Winchester, the only city in the top ten, had the second biggest price rise of 38% in 2007. Henley on Thames, one of the top performing South East towns, is also the second most expensive place in Britain.

Regional house price growth in Britain over the past year has been led by Scotland and the South East (both 14%), reflecting a robust employment market and record levels of net international migration. In Scotland employment has risen by 125,000 in the last five years, whilst in 2006 immigration inflows increased the population by 22,000. Property is also relatively affordable in Scotland, providing a springboard for further significant house price growth. In the South East, unemployment is still very low; the region has 5 of the 6 lowest unemployment local areas in the UK and 27 areas have an unemployment rate below 1%.

Twelve towns have average house prices of over £500,000 – all of them in London and South East. Only Ilkley in West Yorkshire disturbs a list of the 50 most expensive towns dominated by London and the South East.

Nelson in Lancashire is the only town surveyed with an average price under £110,000.

Average house prices in Montrose rose from £123,494 in 2006 to £172,156, an increase of 39%. Winchester came in at second place with prices increasing by 38% to £399,765 followed by Billericay in Essex where prices rose by 35%, to an average of £363,265.

Thirteen of the 20 best performing towns are in Scotland and the South East. This can be explained by a robust employment market, increased levels of immigration and good commutability to key areas of work, such as Aberdeen and central London.

One in two towns (48%) in Britain has an average price above £200,000; this represents a significant increase on 2006 when less than two in five towns (38%) recorded prices above this benchmark. Average prices in Britain are slightly below £200,000.

Southern towns are still the most expensive to live in. There are 75 towns in Britain where the average price is above £300,000, 68 are in London and the South East. Leading the pack is Kensington and Chelsea with an average price of £774,361. Henley on Thames, which recorded one of biggest price increases during the year, is the second most expensive with an average property value of £642,672. Westminster is the third most expensive place in Britain where the average price is £610,516.

Ilkley is the most expensive town outside southern England with average prices of £353,557. Wilmslow and Altrincham are the next two most expensive areas in the North with average prices of £333,970 and £332,951 respectively.

Leatherhead, Richmond upon Thames and Godalming are new entrants into the ten most expensive places in Britain, after recording an increase of 10%, 8% and 9% respectively in average price during the year.


Nelson in Lancashire is the most affordable town In Britain with average prices of £108,320 (the only town with prices below £110,000). Although several Scottish towns had some of the largest price increases in 2007, Scotland still has four of the ten most affordable towns in Britain. Cumnock in Ayrshire is the second most affordable town in Britain. For the last four years Lochgelly in Fife had been the most affordable town in Britain, today it is in sixth place with an average price of £118,838 compared to £97,121 in 2006.

Gosport with an average price of £143,028 is still the only town in southern England where the average price is below £150,000. Both South Ockendon (£168,012) and Clacton on Sea (£168,137) in Essex are the next most affordable towns in the South East. Barking and Dagenham has the least expensive housing in London with average price of £202,000.

Martin Ellis, Chief Economist Halifax Estate Agents, said: "In 2007 thirteen of the top twenty towns recording the biggest price rises are from Scotland and the South East.

In 2006 the most affordable town was Lochgelly with an average price of £97,121; today this distinction goes to Nelson with an average price of £108,320. There are now no towns in Britain with an average price below £100,000. Nearly half of all towns have an average value above £200,000.

Strong economic conditions, highlighted by high employment levels, have boosted housing demand and driven up prices. Relatively good housing affordability in Scotland has also permitted strong price growth in several towns north of the border."