Residents of North East Derbyshire benefit from having the dramatic scenery of the Peak District National Park on the doorstep and from being a convenient commuting distance from Sheffield. These factors helped boost house prices by almost 10% in 2024, earning the local authority the accolade of top property performer of last year.
According to our analysis of Office for National Statistics data of the 50 local authorities with the fastest growing house prices in the year to November 2024, values in North East Derbyshire rose by 9.7% to an average of £239,560, a rise of £21,220 in cash terms.
West Dunbartonshire, northwest of Glasgow and part of Loch Lomond and the Trossachs National Park, came second. This local authority, which is home to many of Glasgow’s commuter towns and villages, saw price growth of 9.2% to an average of £140,080 last year. Monmouthshire, in Wales, was third, with growth of 9.0% to £358,450.
Many of the other best performers in terms of house price growth were also commutable areas near larger cities. For example, Cherwell in South East England is just north of Oxford; Stratford-on-Avon in the West Midlands is popular with Birmingham commuters; Cheshire East is convenient for those working in Manchester; and Newark and Sherwood is close to Nottingham.
These four areas all saw property price growth of more than 7% as first-time buyers and second-steppers increasingly sought more affordable homes on the fringes of cities, enabled by an easing in mortgage rates during the course of last year.
Unlike during Covid, and in the years immediately after the pandemic, when there was a trend for people to move further from urban areas in search of more space, younger buyers are now spending more time in the office. As such, they’re keen to find the best of both worlds – more spacious, affordable homes that are, crucially, near the amenities offered in major cities.
However, the house price cycle has also played a role in the performance tables. Of the 50 local authorities that have seen the strongest price growth over the last year, 45 are in the North of the country – from the Midlands up to Scotland – or in Wales. By contrast, prices in the South have lagged, as they have done for the last eight years. Alongside Cherwell, the only southern winners were Winchester (7.7%) and Mid Sussex (5.1%) in South East England; Greenwich (5.1%) in London; and Broxbourne (4.9%) in the East of England.
Indeed, nine of the 10 areas with the biggest house price falls last year were in the south or East of England or London. Eight – including Adur, Thanet, Portsmouth, Torridge and Dover – are southern coastal towns. These areas were largely popular during the pandemic and saw double-digit house price increases but have now fallen out of favour as buyers seek more commutable locations.
The worst performer, with prices falling 7.8% last year to an average of £374,160, was Rutland in the East Midlands. The local authority had benefited from more relocators from London and the South post-pandemic, but is now becoming costly for the region and seems to be taking a pause for breath.
Looking ahead, we expect to see more Southern areas towards top the price growth league in 2025. Prices in these areas were hit hard when interest rates began to rise. However, falling rates this year should result in their recovery picking up pace.
