A third of towns in the North East have seen house prices fall over the decade to 2020, new analysis by the Office for National Statistics reveals.

Over that time, 33% of towns in the North East experienced declining house prices, far higher than any other region.

No towns in the South East, East of England, East Midlands, West Midlands or the South West saw prices fall over the period from 2010-2020, the figures show.

For its analysis the ONS looked at median house prices in 1,082 towns in England and 104 in Wales, defined as built-up areas with a population of 5,000 and 225,000 at the census in 2011.

It found that of the 10 towns with the lowest median house prices in 2020, six were in the North East, three were in Wales and one was in the North West. 

Within Wales the three towns that appear in the bottom 10 are all located in the South Wales Valleys.

Each of the towns in the bottom 10 were mining and industrial legacy communities in the North of England or South Wales.

Meanwhile, of the 10 towns with the highest prices, six were in the South East of England and four were in the East of England, all within commuting distance to London. 

The ONS also looked at how house prices for different types of properties and in different towns over the course of the pandemic, comparing January 2020 figures with April 2021.

It found that London saw lower growth in median house prices over this period while built-up areas that are too small to be defined as towns had the highest growth.

Prices in smaller built-up areas were up by 9.6%, compared to 9% in towns, 7.8% in cities excluding London and 5.1% in London.

House prices everywhere increased faster than the price of flats and 

the price of flats in towns actually fell during the pandemic.

The price of semi-detached houses in towns rose the most and houses with three or more bedrooms rose faster in price than smaller homes.

Coastal towns benefited from steeper house price growth than those inland.

Hargreaves Lansdown personal finance analyst Sarah Coles says: “The race for space during the pandemic drove us out of cities and poky flats into bigger family homes in towns by the seaside. 

“The trend was powerful enough to reverse the decline we’d seen in coastal towns over the previous decade.

“Buyers spurned cities and snapped up homes in towns and villages. We also embraced the fresh sea air, and coastal towns saw prices outstrip those further inland. 

“It’s likely that we prize the open air more highly now. 

“We’re also prepared to do longer commutes to be beside the seaside when we get home, especially now more of us are moving to working from home for at least part of the time.”