With low interest rates on savings and an unpredictable stock market, many Brits still feel the safest bet is bricks and mortar, so how did the UK property market perform in 2016?
For many UK homeowners, 2016 will have been a productive year for their properties as values have increased across the UK. However, homeowners in Middlesbrough have not been so lucky; this is the only area to have dropped in value over 2016, having decreased by 0.86% and losing an average value of £1,258. To find the areas which have had the most success over the last year, home services marketplace, Plentific.com, has updated its Property Price Index which gives a yearly overview of locations across the UK, excluding London.
On the up…
With five of these top ten areas being within an hour of London by train, it’s safe to say that properties in commuting areas are likely to continue to climb in value! These include Aylesbury (19.5%), Reading (17.06%), St Albans (16.68%), Brentwood (16.45%) and Bedford (15.71%).
Ipswich has taken the number one position on the list with a value increase of 19.99%. Prices also saw a boost in its neighbouring city, Norwich, which ranked in 10th place, increasing by 14.85% over 2016. In terms of added value, St Albans has seen the biggest increase with properties rising by an average of £85,980 over the course of 2016.
The only Scottish area to make the top 10 is Glasgow with an increase of 15.44%, meaning the average property will have risen by £24,485. Whilst Cheltenham is also high on the list, having taken 8th place with a percentile increase of 15.54% and the average value climbing by £47,297.
The only northern area to rank within the top ten is Wirrel, coming 7th with an increase of 15.7%. This means house prices will have risen by an average of £31,342. Other areas in northern-England are ranked significantly lower; Stockport (21st) has shown an increase of 12.88% and Warrington (25th) increased by 11.84% over 2016.
Left by the wayside…
The north makes more of an appearance in our What’s Not table, with half of the areas listed coming from this region. This includes Salford (4.45%), Doncaster (3.99%), Rotherham (2.22%), Bradford (1.56%) and Middlesbrough (-0.86%). The north/south divide is prominently illustrated when we compare the What’s Hot with the What’s Not tables. However, most homeowners will have found that their property still climbed in value regardless of location, with one exception.
Middlesbrough ranked last and is the only location in the UK to have decreased in value over 2016. With an overall change of -0.86%, property prices will have dropped by an average of £1,258 last year.
Oxford has seen a price increase of £22,481 over 2016; however in terms of percentile increase, this is only 4.67%, which is why it’s ranked so low. Other mentions in this table include St Ives (0.56%), Newquay (2.83%), Aberdeen (2.97%) and Stoke-on-Trent (5.41%).
Spokesperson for Plentific, Stephen Jury, said: “These findings are a brilliant insight for those looking to invest in a new area for 2017. Using our list, potential buyers can see the trends of 2016 and determine which areas are likely to keep climbing in value over this year.
In commuter locations such as Reading and St Albans, it’s not just property which is in high demand: with rapid price increases comes a growing requirement for tradesmen as homeowners start to consider home improvements, either to take advantage of their increased equity or because high prices prevent them from moving up the property ladder.”