House prices spike in best performing economies
26th Jun 2012
House prices have spiked in areas with the best performing economies over the last ten years, the latest Halifax report reveals.
The bank's review of economic and house price performance at a local level shows that, between 1999 and 2009, the value of the typical home in the ten local areas that recorded the biggest increases in economic activity rose by 145 per cent (£109,269).
From an average of £75,222 in 1999, it stood at £184,491 in 2009, which is equivalent to a weekly increase of £228.
According to the data, the £109,269 increase in house prices in the ten top performing economic locations was almost a third higher than the £83,501 increase in the average house price in the ten areas with the smallest rises in economic activity between 1999 and 2009.
Furthermore, the average house price in the ten locations with the highest levels of growth in economic activity between 1999 and 2009 is 25 per cent higher than the average house price in the ten worst performing locations (£148,133).
In addition, the premium of £36,358 is nearly three and a half times the average premium of £10,589 ten years earlier.
Martin Ellis, housing economist at Halifax, said the marked differences in local economic performance across the UK appear to have had a significant impact on the housing market over the past decade.
"House price growth has generally been stronger in the areas that have seen the biggest increases in economic activity. The best performing areas have also been the most resilient in terms of house prices during the downturn since 2007," he added.
In future, the pace at which the UK economy recovers will be a key determinant of the outlook for the UK housing market, Mr Ellis said.
Posted by Staff Writer: Ewan Robertson
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