Halifax: House prices under £100,000 vanish from Britain's towns

23 April 2007
No town in the UK now has an average house price of less than £100,000, figures from Halifax for spring 2007 show.

Five years ago, a homebuyer could look to more than 200 towns in the UK for an average price below £100,000, but the number has now plummeted to nil.

At the end of 2006, the UK's most affordable town, Lochgelly in Fife, fell just below the £100,000 average purchase price mark – but house price growth pushed it above the threshold during the first three months of this year.

Residents and prospective homebuyers in Northern Ireland have seen the most rapid house price growth over the last 12 months, with all ten of the towns experiencing fastest growth situated in the region.

Nevertheless, a nationwide growth rate of 2.8 per cent in the first quarter of 2007 is significantly slower than the 4.2 per cent rise in the closing months of 2006, Halifax chief economist Martin Ellis commented.

But already slowing house price growth will level off as the upward pressure exerted by supply shortages is countered by higher interest rates, negative real earnings growth and above-inflation council tax bills over 2007, he predicted.

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