House price growth in the North hit by unemployment

18 May 2015

The 20 areas with the highest level of unemployment have seen the average house price rise by just £4,100, or 3%, over the past six years compared to the national average rise of almost £32,000, or 17%.

In the 20 areas with the least people out of work saw house prices rose by 25%, or £64,783 since 2009.

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Research from Lloyds Bank showed that in Hull and Middlesbrough – the two areas with the highest unemployment based on the Claimant Count – house prices rose by just 2% and 1% respectively over the past six years.

In Hull, the average price grew by just under £2,000 to stand at £107,665 in the 12 months to March 2015, while in Middlesbrough the price inched up by just £888 to £130,508.

Since March 2009, for the UK as a whole, the average price rose by 17%, or £31,819, in value to reach £216,231 in March 2015.

The price growth in Hull and Middlesborough fell far short of inflation, which should have seen the Hull price reach £127,897 and the Middlesbrough equivalent touch £156,674, according to the Bank of England inflation calculator.

Meanwhile, Hart and Winchester, which have had the lowest average unemployment rates since 2009, saw house prices rise by 33% and 37% respectively over the last six years.

The average price in Hart went up by just over £92,000 over the six-year period to reach £374,937 in the 12 months to March 2015, while in Winchester the price increased by just shy of £104,000 to £383,946.

Andy Hulme, mortgage director at Lloyds, said: "There has been a very clear relationship between conditions in the local jobs market and house price performance during the period since the housing market downturn between 2007 and 2009.

He added: "The past few years have underlined the importance of local economic health in determining house price behaviour. Other factors, however, are also key drivers of house price trends including the strength, or otherwise, of housing supply."

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