The ONS have released their latest analysis identifying the types of areas that are seeing the fastest house price growth. This analysis also looks at growth during the coronavirus pandemic, and who could be at risk of being priced out.
Rising house prices and private rents mean that some workers are at risk of being priced out of living in rural and coastal areas. This rise is also causing skill shortages in the tourism and hospitality industries. Young and low paid workers in tourist hotspots are now facing the prospect of being unable to live there.
Despite falling from a record high in June, the average UK house price (£256,000) increased by 8.0% in July 2021 compared with the previous year.
House prices were rising at three times the national rate in some rural and coastal areas in July. Places like Conwy in North Wales (25.0%), North Devon (22.5%) and Richmondshire in the Yorkshire Dales (21.4%) all saw house prices soar during the pandemic.
Meanwhile, the seven areas that recorded house price falls in July were all London boroughs.
Prospective home buyers are seeking more space. Prices for detached houses (9.0% growth in July) are also consistently rising faster than terraced houses (7.7%) or flats (6.1%).
As a result, people living in rural and coastal areas – particularly the young and those on lower incomes – are at risk of being priced out of the housing market.
This could be contributing to hospitality businesses being unable to fill vacancies, with the industry being predominant in tourist areas and containing a high proportion of young and low paid workers.
See: Coronavirus and house price growth – GOV.UK (www.gov.uk)