Eastwood in Nottinghamshire topped the UK’s property hotspots in 2022, with average house asking prices in the area jumping by 29% to £231,381 compared with a year ago, data from Rightmove shows.
The property website says Hulme in Greater Manchester was second on its list with asking prices rising by 26% to £238,249, while Sandbanks in Dorset was third with prices lifting by 22% to £1.6m.
Last year, overall UK average asking prices were 5.6% higher at the end of 2022 compared to a year ago, and 19.7% higher than before the pandemic began in 2019.
However, this year the firm’s study forecasts average national asking prices across the country will fall by 2% “after two and a half exceptional years”, marked by the health crisis, an extended stamp duty holiday, rising inflation and interest rates, and turmoil sparked by the mini-Budget.
It adds: “We are not anticipating an oversupply of available properties through forced sales will prevent more major price falls.”
In 2022, the South East features the most hotspots in the firm’s top 10 list – with Heathfield in East Sussex, St. Peters in Kent, Birchington also in Kent, Cowes on the Isle Of Wight and Sandbanks all appearing.
However, the North East saw the biggest regional annual growth of 10.3% last year.
The report says: “Price growth over the last three years, particularly since the pandemic began, has varied between regions and sectors, with Wales seeing the biggest growth in average asking prices, up by 27%, during this period, while London has seen the lowest, rising by 11%.”
Next year, the survey adds: “There will likely be a period of readjustment for both buyers and sellers at the start of the year as the market settles into its pattern.
“Buyer affordability is likely to be more stretched, however, sellers may not be in a rush to drop prices if they don’t see much competition from other sellers in their area.”
Rightmove property expert Tim Bannister says: “Property prices have risen exceptionally over the last three years. If we compare it with December 2019, just before the pandemic started, the average asking price of a home in Great Britain has risen by a staggering 20%.
“To put that into context, asking prices rose just 3% in the previous three years, and we need to go all the way back to 2013 to see similar price growth.
“We expect average asking prices to drop by 2% next year now that the frenetic period for the market is over, and it is likely that some sellers, particularly those in locations and sectors of the market that have benefitted the most from pandemic price growth, may be willing to give up some of their gains in this calmer market in order to negotiate a successful sale.”
