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The surprising places to buy in Britain where property markets are on the up

A house in Chipping Norton in the Cotswolds, on the market for £1.5m with Knight Frank - Miles & McCulloch Ltd
A house in Chipping Norton in the Cotswolds, on the market for £1.5m with Knight Frank - Miles & McCulloch Ltd

You might be forgiven for thinking that in such a sluggish market, property hotspots – areas where local house price growth soars high above their neighbours – were a thing of the past. The Land Registry reported that the UK’s average house price growth in the year to April was just 3.86 per cent, while the Royal Institution of Chartered Surveyors has found that the level of homes on the market has hovered around a record low for more than a year.

But research by property consultancy Hometrack suggests that if you look hard enough, there are still locations that buck the current lacklustre trend.

“It’s all down to local markets. We don’t live in a unified market where each area performs like every other,” says Richard Donnell, Hometrack’s head of research. “Most of the strongest spots are further away from London, but look closely in the south and you’ll see some too.”

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History is the secret to finding the hotspots, says Donnell. “We’re roughly half way through a property cycle that’s actually repeating what happened around 2000 and 2001.

“Of course the politics and the tax positions for property are different now, but today – like then – London is fully valued. There’s no point looking there for hotspots because prices are falling as a result of property values having reached their limit. Instead, look outside; in some cases, the further away from London the better.”

The market in Broadstairs, Thanet, is booming due to people moving down from London
The market in Broadstairs, in east Kent's Isle of Thanet, is booming

Donnell says that around a third of areas in Britain have moved on from the economic downturn that started after the credit crunch of 2007-8. These areas where average values have recovered tend to be in the capital or within easy commuting distance of it.

“In London and some locations, prices are now 50 per cent ahead of where they were a decade ago, despite the banking crisis,” he explains.

House prices in another third – including much of Wales, Scotland and northern England – are so far no higher than a decade ago. Donnell says prices there will gradually rise “as they do in most house price cycles,” but there’s no real sign yet.

To identify hotspots, he advises, look at the remaining third of the country, in areas like much of the Midlands, selected pockets of southern England and a few parts of Scotland and Wales, which now show growth having previously lagged behind.

Property bright spots
Property bright spots

In research carried out exclusively for The Telegraph, Donnell has looked at price movements across every local authority area in Britain, factoring in local issues such as employment and demographic breakdowns. He found 14 hotspots where annual house prices are rising by six per cent or more, around double the current average in England.

“You’re not going to see old-style galloping house prices with double-digit rises in a year – those days are over,” adds Donnell. “But there are places where prices buck the trend. The housing market isn’t all bad news.”

Here are five areas with the most active local markets.

Forest of Dean

“This area is becoming incredibly fashionable,” explains James Greenwood of buying agency Stacks Property Search.

A property in Dymock, Forest of Dean, £500,000 with Knight Frank
A property in Dymock, Forest of Dean, £500,000 with Knight Frank

“It’s exceptionally well located right by the M4/M5 junction and the A40. Gloucester, Cheltenham, Bristol and Cardiff are all easily accessible and property prices are lower compared with surrounding areas.”

Hometrack found that property prices in this area of west Gloucestershire rose by 6.2 per cent in the past year, and Rightmove says the typical detached house costs £306,305, with terrace properties averaging £156,829. For some commuters, the scrapping of the Severn Bridge toll is a big saving, while more natural attractions include 27,000 acres of Forestry Commission land.

Thanet

Property in this local authority area in Kent is relatively low-cost by south of England standards, but its main centres – Margate, Ramsgate and Broadstairs – are all seeing growing demand due to people moving from London. Prices in the area have risen by 8.2 per cent in the past year.

A house in Birchington, Thanet, £895,000 with Strutt and Parker
A house in Birchington, Thanet, £895,000 with Strutt and Parker

“We’ve seen tremendous interest in coastal Kent. It used to just be Whitstable, but Margate and Ramsgate have stepped up in the last 18 months,” says Edward Church of Strutt & Parker.

There’s no denying the history. There are more listed buildings per capita in Ramsgate than in Bath, and it has stunning Georgian architecture and pretty garden squares. Meanwhile, Margate has undergone a massive regeneration, most famously with the arrival of the Turner Contemporary gallery and the transformation of the old seaside amusement park into the retro Dreamland, which is popular with the growing number of hipsters stalking the streets.

Most homes in Margate are in terraces, and worth on average £224,750, according to Rightmove.

Cotswolds

This area’s house price increase is all down to location – and the presence of some London stardust. “It’s got some of the prettiest countryside within two hours of the capital, great protection thanks to its Area of Outstanding Natural Beauty status, and a plethora of great prep and senior schools,” explains Adam Buxton of Middleton Advisors, a buying agency.

It’s got some of the prettiest countryside within two hours of the capital, great protection thanks to its Area of Outstanding Natural Beauty status, and a plethora of great prep and senior schools

In the past year, property prices have risen by 6.2 per cent across the local authority area, which covers hotspots such as Cirencester, Stow-on-the-Wold and Chipping Campden.

There’s also an enviable transport infrastructure: Banbury is only 55 minutes from Marylebone (that’s faster than most Oxford trains to Paddington) and there’s a new Oxford Parkway station, too. Celebrity owners help keep interest high even during a housing market slowdown, while the presence of an out-of-town Soho House branch and the original Daylesford organic farm make the area even more attractive to buyers fleeing London.

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After the price rises of the past years, properties are expensive: detached houses sell for an average of £510,094, says Rightmove, with semi-detached homes at £315,611.

Kettering/East Northamptonshire

These adjoining local authorities were until recently little-known to families and commuters from outside the area who were looking to work in the capital. But the area’s excellent transport links – it’s less than an hour to get from Northampton to Euston – mean that the market is very active, with property increasing in value over the year by 6.5 per cent in Kettering and 7.6 per cent in East Northamptonshire.

A David Wilson home in Kettering, from £269,995
A David Wilson home in Kettering, from £269,995

Across the county as a whole the average price of a home is £250,451; the most expensive location is Aynho at £533,000 and the cheapest is Corby for £184,978.

Rutland

“This area stands out from the crowd for two main reasons,” explains Edward Brassey of Strutt & Parker. “Firstly, fantastic public schools at Uppingham, Oakham, Oundle, and Stamford, as well as great state schools, all within a stone’s throw. Secondly, the beauty is undeniable, offering the lifestyle that so many Londoners crave.”

A house in Oakham, Rutland, £1.225m with Savills
A house in Oakham, Rutland, £1.225m with Savills

There is green space at Rutland Water, set in 3,100 acres of countryside, with watersports, a nature reserve, and cycling around the perimeter.

Train services will improve when upgrades are completed; for now, the commute to London is 50 minutes once you get to Peterborough station.

The East Midlands area, west of Stamford, is expensive, and prices there have risen 6.8 per cent in the past year. A detached house, on average, is £437,027, according to Rightmove.