The cities and villages the place home costs are rising the quickest

With more interest rate cuts likely, inflation under control and better-than-expected figures on the economy, most analysts say that confidence in the housing market is rising.

The average estate agent now has 33 homes for sale, according to Zoopla – 16 per cent higher than a year ago. But while prices are set to rise, many come after lengthy periods of expensive mortgage payments and political uncertainty.

We’ve consulted estate agents and analysed official figures to bring you a guide to the areas where property prices are rising fastest, and those where prices are plummeting.

WINNERS

OXFORD: up 10.3 per cent in a year (ONS). Average price £549,581 (Zoopla)

WHY PRICES ARE RISING: Oxford always been popular for families but the university city’s unusually large rental market is now drawing landlord buyers. Some 50 per cent of all the city’s homes are now privately let, the highest in any UK city. 

High house prices mean there are very few first-time buyers. The areas of Summertown, Jericho and Cowley in East Oxford are typically the most popular, with diverse and relatively young populations. 

Adrian Wraight of the Oxford branch of agency Scott Fraser says: ‘East Oxford is bustling with independent businesses and live music venues with the city centre in a walkable distance.’

ON THE MARKET: Boasting four storeys and five bedrooms, this house has been adapted for wheelchair access throughout. It’s a huge 2,800sq ft with elegant high-ceiling rooms. 

£1.25m, Scott Fraser, 01865 638740, scottfraser.co.uk

LANCASTER, LANCASHIRE: up 8.1 per cent in a year (ONS). Average price £201,876 (Zoopla)

WHY PRICES ARE RISING: This north-west city is an affordable alternative to the nearby Lake District and an easy drive to Morecambe. 

A growing student population (18,000 at the university) means Lancaster is strong on culture, nightlife and events. The River Lune runs through the city and areas to its south – Bowerham, Scotforth and Hala – are most sought-after. 

According to Doncaster-based Champsurv Surveyors: ‘Since the election there’s been some apprehension in the housing market and agreed prices lower than asking price in most cases.’

ON THE MARKET: Due for completion in October, one of three architect-designed homes with slate grooves and larch cladding, four bedrooms, open-plan living areas and a garage. 

£650,000, Fine & Country, 01524 380560, fineandcountry.com

ST ALBANS, HERTFORDSHIRE: up 6.5% in a year (ONS). Average price £650,805

WHY PRICES ARE RISING: The city a long-time commuter favourite (21 minutes to St Pancras) and favoured by families leaving London thanks to its four private schools, 26 state primaries, nine secondaries. 

The city is compact with inner-area historic locations near the Cathedral such as St Michael’s Village and Holywell Hill, and more family-friendly spots like Marshalswick and pricey Bernardsheath, with larger houses and gardens. 

A petition has started against development on nearby London Colney Green Belt – more of that is expected in future. ‘Almost everything here is within walking distance,’ explains Strutt & Parker’s Visar Bytyqi, who says for best value try Napsbury Park, a wooded stretch south of St Albans.

ON THE MARKET: Close to the famous Cathedral and Verulamium Park is this Grade II listed three-bedroom period gem, with mansard roof and Victorian red brick elevations. 

£915,000, Strutt & Parker, 01707 524305, struttandparker.com

EDINBURGH, SCOTLAND: up 5.9 per cent in a year (ONS). Average asking price £331,792

WHY PRICES ARE RISING: Competition among buyers is fierce and Edinburgh Solicitors Property Centre (ESPC) says homes purchased in the second quarter of 2024 went for 102 per cent of the asking price. 

Why? ESPC believes that with over a fifth of Edinburgh school children being privately educated, there’s a rush of parents relocating to catchment areas of the best state schools. 

There are plenty of investment buyers too: 8 per cent of buyers in the past year were from outside the city, but that doubled to 16 per cent in the centre, closest to tourist locations.

ON THE MARKET: Here’s a four-bedroom family house in the prime Cramond area, with a sitting room extending the full depth of the property. There’s a south-facing garden too. 

£760,000, Knight Frank, 0131 222 9606, knightfrank.com

BATH, SOMERSET: up 5.1 per cent in a year (ONS). Average asking price £584,038

WHY PRICES ARE RISING: A £17m new flagship M&S store in central Bath is a sign of growing business optimism, while agents say classic favourite hotspots – Larkhall and Oldfield Park for example – remain the most popular with house movers. 

There are local disputes in some areas over so-called ‘liveable neighbourhoods’ where cars are effectively banned – one in Lower Lansdown is on ice because residents are taking the council to court, and agents say housing can be harder to sell in the affected streets. 

‘I see measured growth in confidence and forecast an increase in housing transaction numbers in the autumn,’ says Simon Lord of the Bath agency the Simon Lord Property Group. ‘However, in my view, price sensitivity will linger as we go into 2025’.

ON THE MARKET: A three-bed home in a nine-flat complex, with private off-street parking and located in Bath’s Artisan Quarter. It boasts under-floor heating and entertainment space. 

£885,000, Knight Frank, 01225 325996, knightfrank.com

MANCHESTER: up 3.9 per cent in a year (ONS). Average price £250,401 (Zoopla)

WHY PRICES ARE RISING: ‘Manchester over recent years has seen exponential growth both residentially and with multiple large corporations locating themselves,’ says Megan Farnell of city estate agency Leaders. 

Expect more of the same in future: rival agency JLL says that Manchester is predicted to be the north of England’s strongest city for house price growth until 2027, up 2.5 per cent per year. 

And TK property Group – based in Manchester – says look out for growing price growth in Salford (already a media centre and now undergoing extensive regeneration) and Oldham (with the largest annual house price growth of the ten Manchester boroughs, yet still with an average price just over £190,000.)

ON THE MARKET: Three bedroom, three bathroom mews-style house close to Didsbury village. It’s been recently refurbished and is part of a gated development. 

£565,000, Leaders, 0161 249 2820, leaders.co.uk

CARDIFF, WALES: up 3.7 per cent in a year (ONS). Average price £287,831 (Zoopla)

WHY PRICES ARE RISING: ‘The second quarter of 2024 has brought much-needed positive news,’ says Shaun Middleton of the Cardiff-based Principality Building Society. ‘After five consecutive quarters of declining prices, we’re seeing a recovery’. 

The city has an above average proportion of mortgage-dependent buyers – 70 per cent – so prices fell in line with demand when interest rates rose. 

Trendy suburb Roath is most popular with families and new-builds in Cardiff Bay favoured by singletons and investors. City centre home have become popular since plans were submitted to turn an old Debenhams into an urban park.

ON THE MARKET: A mix of classic and contemporary in this five-bedroom period house in the Penylan suburb with fireplaces, high ceilings and an original tiled floor, a modern kitchen and child-friendly garden.

£700,000, Moginie James, 029 2271 0655, moginiejames.co.uk

BRISTOL: up 2.5 per cent in a year (ONS). Average price £375,233 (Zoopla)

WHY PRICES ARE RISING: Clifton and Redland remain the most popular neighbourhoods but major regeneration projects are planned in the city centre and nearby suburbs including Bedminster Green, Temple Quarter, Knowle West, Western Harbour and the Harbour. 

Paddy Hales of Savills in Bristol says: ‘The city has a £15 billion economy, thriving business sector, and one of the highest retention rates for graduates in the country. Bristol’s ambitious net zero targets backed by £1 billion of investment, is seeking to make the city carbon neutral by 2030. 

This, alongside two world renowned universities, has undoubtedly played a role in the city’s ongoing resilience.’

ON THE MARKET: The Loft House is a two-bed apartment in the former Bank of England building in the city centre. It includes a terrace with views over Bristol’s old city. 

£740,000, Knight Frank, 0117 317 1998, knightfrank.com

NORWICH, NORFOLK: up 1.6 per cent in a year (ONS). Average price £272,199 (Zoopla)

WHY PRICES ARE RISING: Although prices are still going up, growth is stalling according to some agents: some 59 per cent of homes sold in 2023 required a price drop. But demand remains fuelled by two universities and buoyant financial services firms (like Aviva) and scientific companies based on Norwich Research Park. 

‘Norwich’s most popular area is the renowned ‘Golden Triangle’ with tree-lined streets, green space, independent shops and good family houses,’ explains Tom Goodley of the city branch of Strutt & Parker. He adds: ‘The north side of Norwich is more affordable; here you can buy a three bed townhouse for £425,000. It’s seen a lot of growth in recent years.’

ON THE MARKET: Meadow Lodge is a spacious four-bed house with a terrace, garden room and substantial grounds of over 0.25 of an acre, including garages and al fresco dining spots. 

£795,000, Strutt & Parker, 01603 361891, struttandparker.com

LOSERS

BIRMINGHAM, WEST MIDLANDS: static in the past year (ONS). Average price £242,559 (Zoopla)

WHY PRICES ARE STATIC: Homes to buy are relatively cheap – even Edgbaston, regarded as the city’s prime address, has an average of only £430,000 (Zoopla). Young professionals prefer the revamped Jewellery Quarter, now home to period and brand New flats. 

However, demand has been sluggish with the economic benefits of a new-shortened HS2 considered less than expected. There’s also a shortage of high-end flats for professional tenants to rent. ‘The city remains an attractive place to work but we face a losing battle to retain talent,’ explains William Cox of the Birmingham branch of agency JLL.

ON THE MARKET: A three-bedroom family house in the Hall Green suburb is a real ‘project’ going to auction on September 12, requiring modernisation throughout. 

Guide price of £99,000, Bond Wolfe, 0121 312 1212, bondwolfe.com

BOURNEMOUTH, DORSET: static in the past year (ONS). Average price £356,563 (Zoopla)

WHY PRICES ARE STATIC: While once again the nearby coastal enclaves of Sandbanks and Canford Cliffs have been declared the UK’s two most expensive waterside hotspots, Bournemouth itself is suffering from a glut of homes – and fewer takers. 

Clarkes agency in Bournemouth says there are 9.7 per cent more houses on the market than the norm since summer 2016 while just 52 per cent of properties on sale in the town in the last 12 months have sold.

ON THE MARKET: A refurbished three-bedroom family semi-detached house on a tree-lined road close to favoured schools. There’s a landscaped rear garden and off-street parking. 

£415,000, Purplebricks, 024 7542 4434, purplebricks.co.uk

CAMBRIDGE: static in the past year (ONS). Average price £608,923 (Zoopla)

WHY PRICES ARE STATIC: ‘There are less buyers. Those who are in the market to purchase are negotiating hard to get a deal,’ explains Mark Wood of local agency Blues Property. Add to that a swathe of new homes built as part of a ‘Cambridge 2040’ expansion scheme.

‘There are plans to deliver a further 52,000 new homes in Greater Cambridge by 2036, 37,000 of which are already committed to in new settlements such as at Waterbeach and Northstowe’ says Colin Brown of the city’s branch of Carter Jonas property consultants.

ON THE MARKET: Three bedroom Victorian house with stripped pine doors and ornate plaster ceiling roses, a long ‘through’ reception room, family room and kitchen plus a rear walled garden. 

£875,000, Savills, 01223 347244, savills.com

DUMFRIES, SCOTLAND: static in the past year (ONS). Average price £158,860 (Zoopla)

WHY PRICES ARE STATIC: Sellers may have been too ambitious with asking prices – out of 119 homes on sale in the town listed on Zoopla this weekend, 30 have been reduced, in one case by over 25%. 

‘While stock levels are up on last year, there is still competition amongst buyers for those properties in the best locations’ according to Marion Currie of the Galbraith agency.

ON THE MARKET: Originally a house built in 1823, this was the home of Peter Pan creator J M Barrie. Recently used as a community centre, it’s ripe for returning to family use. 

Price on Application to Shepherd Chartered Surveyors, 01387 264333, shepherd.co.uk

SOUTHAMPTON, HAMPSHIRE: prices static in the past year (ONS). Average price £264,125 (Zoopla)

WHY PRICES ARE STATIC: ‘Southampton has witnessed a profound transformation in its housing over the last few years,’ says Brian Linehan of the Belvoir agency. 

He says the private rental sector has grown hugely, often involving family homes split into Houses in Multiple Occupation. Some agents say this distorts prices as properties that used to sell as houses at a higher price have become multiple flats selling for less.

ON THE MARKET: Considered one of the city’s best apartments – actually two flats combined this has three double bedrooms, oak flooring and a bathroom with Jacuzzi. 

£425,000, Leaders, 0238 202 5502, leaders.co.uk

TRURO, CORNWALL: prices static in the past year (ONS). Average price £338,971 (Zoopla)

WHY PRICES ARE STATIC: There are plans to regenerate city centre areas using £23m of government cash on seven modernisation schemes – but some of these have stalled, leaving a substantial building site in the city centre and deterring buyers. 

About 5 per cent of the city’s properties are second homes and agents fear Cornwall Council’s threat to triple council tax on these are driving away buyers from up-country.

ON THE MARKET: Within walking distance of the centre, this seven-bedroom house has 1.25 acres of grounds including a double garage with rooms and a stream running alongside one boundary. 

£700,000, Jackson-Stops, 01872 309544, jackson-stops.co.uk

YORK, YORKSHIRE: down 1.6 per cent in a year (ONS). Average price £339,567 (Zoopla)

WHY PRICES HAVE FALLEN: Favourite locations remain Micklegate just south of the city centre, quiet Bishophill and South Bank around Rowntree Park, and the Georgian houses in Bootham and Clifton in the north of the city. 

‘It’s been a more traditional summer with steady interest in properties when priced correctly,’ says Ben Hudson of York agency Hudson Moody. York MP Rachael Maskell is campaigning against the spread of Airbnbs in the city, which she blames for anti-social behaviour and reducing stock for buyers. VisitBritain reports a 65% rise in Airbnb-style short letting in Yorkshire in the five years to June 2024.

ON THE MARKET: A third-floor two-bedroom apartment in a grade II listed Victorian crescent. There’s an open-plan kitchen, dining and living space, and a gated parking area too. 

£900,000, Savills, 01904 617818, savills.com

EXETER, DEVON: down 1.7 per cent in a year (ONS). Average price £349,386 (Zoopla)

WHY PRICES HAVE FALLEN: There’s a high volume of new housing with supply outstripping demand: 2,600 houses or flats were built from 2021 to 2023 with another 5,300 now being prepared with planning consent, many for the Cranbrook area of the city.

 Long-established residential areas like St Leonards and Pennsylvania near the university, and Topsham lining the Exe Estuary – all known for period or family homes – are holding their values.

ON THE MARKET: This huge five-bed house carved from a former convent school has been renovated, with the project overseen by celebrity interior designer Naomi Cleaver. 

£975,000, Strutt & Parker, 01392 321523, struttandparker.com

LINCOLN, LINCOLNSHIRE: down 2.6 per cent in a year (ONS). Average price £207,884.

WHY PRICES HAVE FALLEN: Sellers may be asking too much. In one week this summer there were almost 200 homes on sale across Lincolnshire that reduced their asking prices, while 4,500 homes had been on sale for three months or more, says local estate agency Walters. 

Affluent buyers head to the Uphill area dominated by period homes and the tourist-heavy Cathedral Quarter: Downhill is better value and more modern, attracting families and first time buyers, and students from the city’s universities.

ON THE MARKET: A village development just east of the city ranges, from two-bedroom bungalows to four-bedroom family homes. 

From £325,000 to £595,000, E5, 01427 392106, e5-martonmeadows.co.uk

BRIGHTON, EAST SUSSEX: down 2.7 per cent in a year (ONS). Average price £488,496 (Zoopla)

WHY PRICES HAVE FALLEN: Zoopla says Brighton’s a victim of the reversal of the ‘race for space’ – when affluent buyers from London wanted nearby coastal homes during Covid. 

Now some are leaving, reducing demand and depressing prices. Agents say first-time buyers (the mainstay of Brighton’s youthful housing market) favour the stylish Hanover and alternative-lifestyle Kemptown areas in particular, but are facing high mortgage costs.

ON THE MARKET: A dual aspect second floor flat in a Grade II listed building boasting sea views, entertaining space, elegant fireplace and contemporary kitchen with three ovens. Two bedrooms, two bathrooms. 

£825,000, Hamptons, 01273 031915, hamptons.co.uk

WESTMINSTER, LONDON: down 22 per cent in a year. Average price £1,494,029 (Zoopla)

Why Prices Have Fallen: Be wary of price falls or rises in this exclusive area as there are relatively few sales each year, but values have undoubtedly been hit by worries over increases to Capital Gains Tax and restrictions on Non-Doms who leave homes empty while they work overseas. 

Some 8.7 per cent of Westminster priorities are second homes. ‘Any significant price movement in Central London will be in abeyance until the government fiscal measures are clarified,’ warns William Delaney of West End agency Coopers of London.

ON THE MARKET: A stunning three-bed apartment in exclusive Artillery Row, impeccably presented with high-ceilinged rooms and a generous terrace, all close to beautiful Green Park. 

£1.8m, Hamptons, hamptons.co.uk, 020 3582 3220