London borough of Newham sees biggest urban house price rise in UK in 2015

Newham in London recorded the biggest percentage rise in house prices among major UK towns and cities over the past year, according to new research.

The average house price in the London borough was 22% higher than in the previous year, increasing from £261,399 to £319,522 in 2015, nearly double the 12% increase in London as a whole.

The research from home lender the Halifax, based on its own figures, also shows that Royston in Hertfordshire experienced the second biggest rise in average house prices with an increase of 19%. And all 10 top performers were in London and the South East.

Stroud in Gloucestershire, Wellingborough in Northamptonshire, and Solihull in the West Midlands were the top performers outside London and the South East, recording price rises of 14% to 15% over the past year.

A small number of towns recorded modest declines in house prices 2015. Prices in Merthyr Tydfil in South Wales fell 3.8%, in Colwyn Bay in North Wales they fell by 2.3%, while in Durham prices were down 2.1% and in Coalville in Leicestershire down 0.5%.

The 10 worst performing towns are outside London and the South East with the exception of the country’s most expensive area, Kensington and Chelsea, where prices have risen by just 1% in the last year.

‘Those areas that have seen the biggest house price increases over the past year are either in outer London or within close commuting distance of the capital. Demand in these areas has risen as rapid house price rises in central London in the past few years have caused increasing numbers of people to look for property in more affordable areas,’ said Martin Ellis, housing economist at the Halifax.

‘A few towns have experienced modest price falls. These areas are typically still suffering from relatively weak employment and economic conditions, which has dampened local housing demand,’ he added.