Buyers unable to afford capital’s more central areas trigger 22% jump in property values but prices slide in parts of Wales.
Newham in east London experienced the biggest rise in property values during 2015, according to Halifax, as buyers priced out of the heart of the capital looked for houses within commuting distance of the city.
Stamp duty changes have made it more expensive to buy houses at the top end of the market, meaning Kensington and Chelsea was among the top 10 areas showing the weakest property growth last year, with prices up just 1%.
In contrast, prices in Newham jumped 22%, while Royston in Hertfordshire and the London boroughs of Redbridge, Enfield, Croydon and Bexley were also in the top 10 risers.
Merthyr Tydfil in south Wales was the worst performer in the Halifax survey, with prices down 3.8%, followed by Colwyn Bay in north Wales, and Durham, north-east England.
Halifax’s housing economist, Martin Ellis, said: “Those areas that have seen the biggest house price increases over the past year are either in outer London or within close commuting distance of the capital.
“Demand in these areas has risen as rapid house price rises in central London in the past few years have caused increasing numbers of people to look for property in more affordable areas.
“A few towns have experienced modest price falls. These areas are typically still suffering from relatively weak employment and economic conditions, which has dampened local housing demand.”