House prices up 219% over 10 years in parts of the UK
House prices in certain areas of the UK have tripled over the past 13 years; it now costs around £15,000 more to live in one of the top-priced areas.
In just a decade, prices have shot up by 219% to an average of £214,162 in 10 locations, including Edinburgh, Liverpool, London and Belfast, according to Halifax.
This is around 30% more than price increases in those areas with the lowest economic activity, such as Coventry and Belfast.
The north-south divide
The south of the UK has been more resistant to economic change: the 10 locations recording the largest falls in house prices are in the north.
The four areas boasting the most stable prices are Wiltshire, Hampshire, Brighton and Hove, and Southampton. Meanwhile, eight of the 10 areas with the lowest economic levels of activity are in Wales and the north-west of England.
The biggest difference within a city is in East London (including Tower Hamlets, Hackney and Canary Wharf), where house prices rose a massive 236% over a 10-year period (from 1998 to 2008).
Since then house prices in the best-performing areas have fared significantly better despite the economic downturn, with prices falling on average by 13% in the highest-priced areas, compared with 24% in the lowest.
The areas with the highest growth rates per person are: Badenoch and Strathspey; Belfast; Bournemouth and Poole; Cambridgeshire; Cornwall and the Isles of Scilly; Edinburgh; Glasgow; Inner East London; Inverness, Nairn and Moray; North Lanarkshire; Liverpool.
The bottom 10 areas are: Blackpool; Coventry; East Ayrshire and North Ayrshire Mainland; East Renfrewshire and Renfrewshire; Dudley and Sandwell; Flintshire and Wrexham; Powys; Stoke-on-Trent; Thurrock; Torbay; Inverclyde.
Strength in the south
Suren Thiru, housing economist at Halifax, says: "The north-south divide that has opened up with the general outperformance of the housing market in southern England appears to reflect the stronger economic performance of these regions."
The latest news is that the mortgage market is predicted to remain largely flat in the coming months, despite a slight rise in May.
Gross mortgage lending was up 12% in May from the previous month, according to the Council of Mortgage Lenders.
The council warns: "Distorting effects from Easter and bank holidays cloud the picture", but adds: "Essentially flat levels of lending are likely over the next couple of months."
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