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