For the first time ever, the average house price now exceeds £500,000 across more than 15 per cent of Great Britain.

The number of half a million-pound hotspots jumped 50 per cent during the pandemic, rising from 874 wards in 2019 to 1,312 in 2021.

Born from a desire for more space, and spurred on by the Government’s stamp duty holiday, the momentum for moving resulted in a mini house price boom. But with stock in long-favoured locations unable to meet increased demand, surrounding wards benefited, too (see map, below).

The South West was the area which saw the largest rise in half a million-pound purchases (167 per cent). This reflects a surge in house prices across more rural parts of the country.

The number of £500,000+ wards in the traditional lifestyle relocation and downsizer hotspots of the Cotswolds, Bath and Somerset increased from 17 to 29 (bringing in the likes of Stow and Northleach, Combe Down and the Chew Valley West); whereas the South Hams and Cornwall combined saw an overall increase from four to 11. 

Meanwhile in England's South East and East the expansion of the half-million ward has been quite widely spread across the commuter zone and several coastal markets such as Aldeburgh and Southwold on the Suffolk Coast.

There are eight new hotspots in the East Midlands – with four new £500,000 wards in Rutland and a further four in East Northamptonshire. Meanwhile, the West Midlands has seen 13 new £500,000 wards in the local authorities of Wychavon, the Malvern Hills and Stratford-on-Avon

The increase in suburban and semi-suburban locations breaching the £500,000 threshold is most notable in London, with seven wards tipping over in Croydon, and a further eight in Waltham Forest. Now, almost two-thirds (63 per cent) of all London areas are seeing an average house price of £500,000 or more, and a quarter of the wards yet to hit the mark in the capital are within £50,000 of that benchmark.

While regions to the North still have the fewest of these hotspots, the tally in Yorkshire and the Humber has doubled over the past two years from five to 10 (four located in Harrogate, and one in Ryedale). Our research also reveals the emergence of the first £500,000 wards in the North East, with three wards in Ponteland and the ward of Longhorsely joining the list. Meanwhile, Scotland is yet to register its first £500,000 ward.

These rises mean that the range of options for those with smaller budgets is increasingly limited. This said, the four successive interest rate rises and the rising cost of living are likely to bring more caution over the coming months which will mean that the rate of price growth slows progressively, potentially to low single-digit figures in coming years. This will come as welcome relief to many who are looking to make their next move.

Further information

Contact Lucian Cook