Towns with the highest house price growth in 2021 have seen values rise as much as 21.8%, three times higher than the national average.
The UK house price winner in 2021 is Taunton in Somerset rising the most, up 21.8% during the year according to Halifax, which is three times higher than the average of 6.2% nationwide.
Property values in Taunton have increased £56,546 to £315,759, has benefited its location close to the M4, being close to Chippenham and from home movers looking for more space.
Nearby Chippenham house prices were higher by 18.1% over the year with values rising £58,322 and average property values of £381,181.
Strong growth for regional towns
In the top twenty only five were in the South East and South West and the remaining 15 towns were in the Midlands, Wales, North of England and Scotland with none in London.
This table from Halifax shows the top ten UK towns with the biggest percentage in house prices during 2021 and the current average values.
| Town | House prices | Increase |
|---|---|---|
| Taunton | £315,759 | 21.8% |
| Newark | £280,934 | 20.0% |
| Rochdale | £206,098 | 18.5% |
| Chippenham | £381,181 | 18.1% |
| Braintree | £356,216 | 18.0% |
| Widnes | £222,876 | 17.8% |
| Motherwell | £177,118 | 17.3% |
| Bolton | £212,671 | 16.9% |
| Hereford | £306,872 | 16.9% |
| Walsall | £230,972 | 15.9% |
The second highest rise was Newark with house prices up 20.0% or £46,732 over the year and average property values of £280,934.
Older equity release buyers can benefit from higher house prices with improved provider loan to values when accessing cash with a lifetime mortgage to improve the quality of life.
With much lower growth in London, the highest rise in house prices borough was Enfield up 6.8% up £32,390 and values of £512,135 followed by Harrow up 6.7% or £35,793 and values of £567,501.
Across the capital house prices were mainly flat with Greater London average values down -0.6% from £558,272 to £554,684 and Westminster down the most at -6.9% year on year.
These higher values make it harder for first time buyers to get on the property ladder and they need larger deposit, higher mortgage and earnings to buy a new home.
See how much the mortgage repayment costs would be when buying a new home at this link:
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Buyer demand high in the North
Areas that showed the largest house price growth were in high demand from buyers looking for greater affordability and space compared cities and four of the top 20 are from the North West.
Top Northern town is Rochdale rising by 18.5% or £32,123 with an average property value of £206,098, Widnes house prices are higher by 17.8%, Bolton up by 16.9% and Wirral up by 14.5%.
Three towns are in Yorkshire and the Humber with six in the Midlands and Wales whereas in 2020 eleven of the top 20 were in London and the South East and only two in 2021.
Regionally Wales has the greatest house price growth averaging 14% with values of £231,134 and well ahead of Yorkshire and the Humber and East Anglia rising just over 10% over the year.
For remortgage buyers happy to stay in their existing home, the higher values mean they can get a further advance which can be used to increase indoor space by adding an extension or loft conversion.
Scotland had average house price growth with Motherwell leading up 17.3% followed by Hamilton rising 13.7% and Dumfries higher by 13.6%.
What are your next steps?
Speak to our LCM mortgage advisers if you are buying a new home and looking for the best mortgage deal. Learn more by using the property value tracker chart and equity release calculator.
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