Newport in South Wales came out on top in terms of house prices increases in 2018, while Aberdeen was shown to be the worst performer other than London, as shown by a new analysis of Land Registry figures.
Newport saw its average property value increase by 10.6% to £182,505. By contrast, the study from Gatehouse Bank shows that prices in Aberdeen fell by 6.5% to 152,799.
Nationally, the average rate of growth across the UK for the year was 2.6%, and the data shows that the vast majority, indeed almost 80%, of local authorities saw prices rise. Just 88 of the 406 local authorities saw prices fall.
Overall, 2018 was an encouraging year for house price growth in South Wales, as Newport was closely followed by Merthyr Tydfil. Indeed, the town saw average prices increase by some 9.7% to £106,228. Elsewhere, Nuneaton at 9.3%, Warrington at 8.6%, and Corby at 8.3% made up the top five.
Conversely, the worst performing towns and cities along with Aberdeen were Eastbourne, where prices dropped by 5.9% to £228,744, St Albans, which saw a 5.1% drop to £501,817, Watford, which was down 3.1% to £350,868 and Conwy down, 2.7% to £159,589.
‘It was an unpredictable year for house prices in 2018 and in the end, although the market only just outpaced inflation on the whole, there were still some stand out performances. Increases of 10.6% in Newport and 9.7% in Merthyr Tydfil are pretty striking when you consider the political instability that has weighed on the UK since the Brexit vote,’ said Charles Haresnape, chief executive officer of Gatehouse Bank.
‘Poor performances like that seen in Aberdeen, which fell 6.5%, are proof that the cocktail of economic uncertainty, lack of housing supply and a raft of buyer incentives and cheap borrowing are creating a heady mix of outcomes across the country,’ he explained.
‘Of course, a strong increase in one year is no guarantee of future success. Indeed, only three places in 2017’s top 10 appear in 2018’s top flight, with first place Cambridge dropping to 259th of all local authority areas last year,’ he added.