Luton tops national list of property hotspots

On the up: Cambridge Street, Luton (credit: Nigel Cox/Geograph)

On the up: Cambridge Street, Luton (credit: Nigel Cox/Geograph) - Credit: Archant

Local agents have been saying it for some time, and now it’s official: the Luton property market is hot.

House prices in the Bedfordshire town shot up during 2016, recording a bigger increase than any other UK town or city, according to the Halifax.

While the UK-wide average increase was a mere 7.5 per cent, Luton showed 19.4 per cent growth; the average property there was up nearly £42,000, from £214,934 to £256,636.

Dunstable wasn’t far behind, securing third place (behind Barking and Dagenham) with 17.9 per cent growth and an average price of £253,799. In seventh place was Watford, with a 15.3 per cent increase and an average price of £418,080.

Aberdeen was at the other extreme, with prices in the Scottish city dipping by 6.9 per cent to £203,425.

Martin Ellis, a housing economist at Halifax, said: “Most of the areas that have seen the biggest house price rises during 2016 are either within close commuting distance of the capital or in outer London.

“Demand in these areas has risen as substantial property price rises in central London over the last few years have caused increasing numbers of people to seek property in more affordable areas.”