Zoopla Property : UK’s newest towns see biggest house price growth in last decade

By Nicky Burridge

January 23, 2017

What's the latest?

Property values in new towns built after World War II have risen at a faster rate than for the UK as a whole over the past decade, according to mortgage lender Halifax.

House prices in new towns have soared by 32% or £55,500 since 2006, to leave the typical home costing £228,902.

The rise outperforms the 26% or £51,600 rise seen across the UK as a whole during the same period.

Why is this happening?

Some of the growth has been driven by strong house price gains in London - which have rippled out to new towns located on the edge of the capital.

Martin Ellis, housing economist at Halifax, explained: 'Many of these new towns are within easy commuting distance of major commercial centres where property is typically more expensive. This is particularly the case in the south east, where the average property price is well below that in London.

'This makes the new towns a highly popular choice with homebuyers, explaining their relatively good house price performance. And popularity has been particularly notable during the last decade.'

Who does it affect?

Homeowners in Welwyn Garden Cityhave seen the strongest house price growth during the past 10 years, with typically property values soaring by 67%.

Bracknell, Hemel Hempstead, Stevenage, Basildonand Harlowhave all also seen gains of more than 50%.

But not all new towns have been a success in terms of house price growth, with values actually falling since 2006 in Skelmersdaleand Runcorn, both in the north west, and Glenrothesin Scotland.

Sounds interesting. What's the background?

New towns were created in waves after World War II to rehome people who lived in sub-standard housing or whose homes had been bombed during the war, and later to help alleviate housing shortages.

Although no settlements have been officially designated as new towns since the 1970s, several new large-scale developments have still been built, such as Cambournein Cambridgeshire and Ebbsfleetin Kent.

The Government's 'garden towns' and 'garden villages' - self-contained communities with their own facilities, built in new areas, rather than existing urban ones - are reminiscent of the new towns built after the war.

Earlier this year the Government approved 14 new 'garden villages' that could lead to more than 48,000 new homes being built across England.

It estimates that the 17 new garden settlements, combined with the seven existing ones, could provide almost 200,000 new build homes.

Top three takeaways

• The UK's newest towns are proving to be hot spots for house price growth with values soaring by nearly a third in 10 years.

• Property values in new towns have risen at a faster rate than for the UK as a whole during the past decade.

• House prices in new towns have soared by 32% or £55,500 since 2006, to leave the typical home costing £228,902.

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