5 Jan

Luton saw biggest house price increase in 2016

Luton saw biggest house price increase in 2016

Luton experienced a bigger increase in house prices than any other major town or city in Britain last year, new figures have revealed.

According to Halifax, the average house price in the Bedfordshire town rose from £214,934 to £256,636 in 2016.

This is an increase of 19.4 per cent compared with the previous year, and well up on the average of 7.5 per cent that was recorded across the country as a whole.

Interestingly, the ten biggest price rises in percentage terms last year were also in London and the south-east.

For instance, the borough of Barking and Dagenham came second, with typical property values going up by 18.6 per cent, followed by Dunstable, which saw an increase of 17.9 per cent.

Martin Ellis, housing economist at Halifax, believes the surge in prices in this part of the country is because these places are either in or offer easy access to London.

"Demand in these areas has risen as substantial property price rises in central London over the last few years have caused increasing numbers of people to seek property in more affordable areas," he observed.

Mr Ellis noted that the situation is very different in other areas, with Aberdeen seeing the biggest decrease in 2016, with a fall of 6.9 per cent.

"On the north-east coast of Scotland, it is highly dependent on the North Sea oil and gas sector," he commented.

"The substantial fall in oil prices in the past couple of years has hit the industry hard with adverse impact on demand for homes in the area. Price declines elsewhere have been modest.”ADNFCR-1222-ID-801830730-ADNFCR

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