After researching government data on property prices across the UK over the past 10 years, TIC Finance has put together some key advice on the areas with the highest average growth rates and the most stable property markets to inform your investments.
Counties with the highest growth rate 2010-2020
| Region/Country name | County/UA name | Year to Jun 2020 | Average % change |
| South West | Isles of Scilly | 367,500 | 9.63% |
| South East | Slough | 324,863 | 6.40% |
| East of England | Thurrock | 285,000 | 5.95% |
| South East | Medway | 251,250 | 5.79% |
| East of England | Central Bedfordshire | 311,250 | 5.70% |
| South East | Milton Keynes | 285,000 | 5.68% |
| East of England | Southend-on-Sea | 292,500 | 5.63% |
| East of England | Luton | 247,500 | 5.53% |
| South West | Bristol, City of | 273,500 | 5.36% |
| East of England | Hertfordshire | 395,000 | 5.25% |
| East of England | Bedford | 282,499 | 5.23% |
| South East | Brighton and Hove | 360,000 | 5.18% |
| East of England | Essex | 313,748 | 5.13% |
| South East | Kent | 298,998 | 5.11% |
| South East | Wokingham | 420,000 | 5.07% |
| East of England | Cambridgeshire | 300,750 | 5.06% |
| South East | Surrey | 440,500 | 4.86% |
| South East | Reading | 302,500 | 4.85% |
| South East | Buckinghamshire | 393,625 | 4.72% |
| South East | Windsor and Maidenhead | 480,750 | 4.72% |
Despite being the area with the highest average growth rate over 10 years, the Isles of Scilly also has one of the least stable property markets, with prices on the isles rocketing up in some periods but falling in 5 out of the 10 years.
Wales and the north of England is also completely missing from the top 20 areas for growth, with the South East and East of England dominating in terms of average price growth. However, last year, 3 areas of the North West and 6 areas of Wales saw the highest levels of growth in the entire country.
Counties with the highest rate of growth 2019-2020
| Region/Country name | County/UA name | Year to Jun 2020 | % change 2019-20 |
| Wales | Merthyr Tydfil | 113,500 | 19.47% |
| East of England | Peterborough | 205,625 | 7.67% |
| North West | Blackpool | 118,000 | 6.37% |
| Wales | Pembrokeshire | 180,000 | 5.88% |
| Wales | Monmouthshire | 259,998 | 5.24% |
| Wales | Swansea | 154,500 | 5.10% |
| Wales | Bridgend | 159,486 | 4.93% |
| North West | Halton | 150,000 | 4.90% |
| Wales | Isle of Anglesey | 177,500 | 4.89% |
| North West | Cheshire West and Chester | 206,998 | 4.81% |
Counties with the most stable house prices 2010-2020
By analysing average house prices over the past 10 years, TIC Finance has determined the most stable counties in the UK.
| Region/Country | County | Times Prices Fell (10 years) | Average Yearly % Change | Current Average Price (Jun 2020) |
| East of England | Southend-on-Sea | 0 | 5.63% | 292,500 |
| South West | South Gloucestershire | 0 | 4.69% | 279,000 |
| South East | Oxfordshire | 0 | 4.56% | 349,998 |
| Wales | Newport | 0 | 4.06% | 178,500 |
| South East | Portsmouth | 0 | 3.72% | 215,000 |
| South East | Slough | 1 | 6.40% | 324,863 |
| South East | Medway | 1 | 5.79% | 251,250 |
| East of England | Luton | 1 | 5.53% | 247,500 |
| South West | Bristol, City of | 1 | 5.36% | 273,500 |
| East of England | Bedford | 1 | 5.23% | 282,499 |
| South East | Brighton and Hove | 1 | 5.18% | 360,000 |
| East of England | Essex | 1 | 5.13% | 313,748 |
| South East | Kent | 1 | 5.11% | 298,998 |
| South East | Wokingham | 1 | 5.07% | 420,000 |
| East of England | Cambridgeshire | 1 | 5.06% | 300,750 |
| South East | Surrey | 1 | 4.86% | 440,500 |
| South East | Buckinghamshire | 1 | 4.72% | 393,625 |
| South East | Windsor and Maidenhead | 1 | 4.72% | 480,750 |
| East of England | Peterborough | 1 | 4.61% | 205,625 |
| South East | West Sussex | 1 | 4.50% | 326,500 |
Buying in counties where house prices have fallen the least often in the last 10 years may provide additional stability to your investment. In addition, reviewing the average yearly price change shows where the property market may perform best.
Counties with the least stable house prices 2010-2020
| Region/Country | County | Times Prices Fell (10 years) | Average Yearly % Change | Current Average Price (Jun 2020) |
| South East | Southampton | 3 | 3.60% | 219,500 |
| West Midlands | Telford and Wrekin | 3 | 2.74% | 175,500 |
| North West | Blackburn with Darwen | 3 | 2.47% | 122,488 |
| Wales | Rhondda Cynon Taf | 3 | 2.27% | 115,000 |
| Wales | Isle of Anglesey | 3 | 2.16% | 177,500 |
| Wales | Neath Port Talbot | 3 | 2.07% | 120,500 |
| Wales | Wrexham | 3 | 1.93% | 153,500 |
| Wales | Carmarthenshire | 3 | 1.73% | 143,750 |
| North East | Northumberland | 3 | 1.46% | 165,475 |
| Yorkshire and The Humber | North Lincolnshire | 3 | 1.46% | 142,750 |
| Wales | Swansea | 3 | 1.45% | 154,500 |
| North East | Middlesbrough | 3 | 1.28% | 135,000 |
| Wales | Powys | 3 | 1.17% | 180,000 |
| Wales | Merthyr Tydfil | 4 | 3.15% | 113,500 |
| Wales | Gwynedd | 4 | 1.67% | 158,500 |
| Wales | Pembrokeshire | 4 | 1.61% | 180,000 |
| North East | Darlington | 4 | 1.25% | 142,850 |
| Wales | Ceredigion | 4 | 1.20% | 185,375 |
| North West | Blackpool | 4 | 0.71% | 118,000 |
| South West | Isles of Scilly | 5 | 9.63% | 367,500 |
Wales has arguably the least stable housing market, with a number of Welsh counties making the top 20 least stable for house price drops over the last 10 years.
Tips from a property expert
Paran Singh, a financial advisor at TIC Finance provides some advice on avoiding negative equity:
- Save as much deposit as you can – If you are able to save more than 5% of your mortgage but will struggle to build up enough savings for 10%, consider paying a higher deposit to reduce your overall debt owed.
- Stay put – Purchasing a house at this time with a high LTV mortgage will be a much safer option if you are planning to stay in the same place for a longer period of time. Unexpected circumstances aside, thinking long-term could mean you weather any house price changes that jeopardise your equity.
- Only overpay your mortgage if you can afford it – High LTV mortgages generally have higher repayment rates so overpaying to improve your equity may not be possible. Only consider this option if you’re in a comfortable place financially.
Tips from a mortgage expert
Lloyd Edwards, Mortgage adviser from Bentley Holmes:
- A 95% mortgage is a good idea if it enables someone to get their foot on the property ladder and is the maximum amount of deposit they have. There is also the Help to Buy scheme from the government which supports this type of mortgage currently.
- Buyers should be aware that interest rates with this level of deposit can be higher, credit scores are scrutinised more by the lenders and lenders will also lend less at this level than with a higher deposit.
- It is worth waiting until April when the new government 5% deposit scheme is launched to see what more options will be available.
Sources
House price data are taken from the ONS.
