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Property prices in top performing UK economic areas revealed

The research by home lender the Halifax, based on its own data, shows that the ten areas in the country saw property prices leap 219% in the decade between 1998 and 2008. It means that average property price in these locations from £67,178 in 1998 to £214,162 in 2008.

Although some have undoubtedly seen prices fall back, by an average of 20%, since then because of the economic downturn, even taking this into account the top ten performing areas have still seen prices increase by around £100,000.

East London, traditionally seen as a less lucrative part of the capital, tops the list thanks to developments in Canary Wharf and Docklands. The average house price in London’s Docklands rose by 236%, almost £250,000, to £354,202 in the ten years to 2008. Since then they have fallen back by 20%, around £70,000. However, the figure is still around £180,000 higher than in 1998.

Second in the economic growth list was Inverness, Nairn and Moray in Scotland, together with Badenoch and Strathspey. Here the average price rose by 197%, from £58,092 in 1998 to £172,541 in 2008. Since then prices have fallen by 13%.

In third place is Belfast with the peace agreement in Northern Ireland largely credited with boosting the economy. Over the ten years to 2008, the average house price surged 344% to £228,647. However, the city has seen a strong reverse in the past three years, with the average price down 46%. Despite this, the average remains some £72,000 higher than in 1998.

In fourth place is North Lanarkshire in Scotland with a 161% rise over the decade from £53,645 to £140,061with a loss of 25% in the last three years. Cambridgeshire is next with a decade long increase of 210% followed by Edinburgh on 199%. Edinburgh has also seen the smallest loss of price at 12%.

Cornwall and the Isles of Scilly, Bournemouth and Poole, and Liverpool make up the rest of the top ten.

Home buyers must, on average, part with over £15,000 more to reside in the areas with the highest levels of economic activity in the UK. House prices in the ten local areas with the highest level of economic activity across the UK in 2008 were, on average, £15,462, some 6% higher than their regional average. This is more than three times the average premium of £4,613 ten years ago. The average house price in the ten top performing areas was also equivalent to 126% of the national average house price.

The report also shows that over the past three years, average house prices have fallen by around 24% in areas with the largest decline in economic activity such as Hull, Blackpool, Walsall and Wolverhampton.

Eight out of ten areas with the lowest levels of economic activity are in Wales and the North West. The Isle of Anglesey has the lowest value of economic activity. House prices are nearly £10,000 lower in the areas with the lowest values of economic activity. The average house price in the ten locations with the lowest levels of economic activity are £10,196, some 6% below their regional average and is equivalent to 88% of the national average house price.

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