Armagh has recorded the biggest increase in house prices of any UK city over the past five years with a rise of 188%, according to new research from Halifax Estate Agents.

Following Armagh, the next best performing cities are Newry (157%), Lisburn (152%) and Londonderry (132%).

Bradford – the best performing British city – experienced a 131% increase to £136,755, Halifax added. Two Scottish cities – Dundee and Aberdeen – and two Welsh cities – Swansea and St David’s – also feature amongst the ten top performing cities over the period.

Pricey
Seven cities in the Halifax research have an average house price above £300,000. The City of Westminster is the most expensive city in the UK with an average house price of £601,821.

Winchester is the most expensive city outside Greater London with an average house price of £379,643. A further 24 cities have an average house price above £200,000, dispersed fairly evenly across the regions.

Only two cities in the UK have an average house price below £135,000. These are Hull (£128,863) and Stoke-on-Trent (£134,978).

Overall, house prices have more than doubled over the past five years in 18 cities. More than one in four cities has recorded an increase in house prices of at least 100%. However, Cardiff has recorded the smallest increase in house prices in the past five years with a rise of 41%.

Best Performing Cities 2002 – 2007
Armagh, Northern Ireland – £199,974 (Avg Price) up by 188%
Newry, Northern Ireland – £233,075, +157%
Lisburn, Northern Ireland – £242,873, +152%
Londonderry, Northern Ireland – £184,129, +132%
Bradford, Yorks & Humber – £136,755, +131%
Dundee, Scotland – £152,050, +130%
Aberdeen, Scotland – £200,721, +125%
Swansea, Wales – £163,545, +125%
St David’s, Wales – £258,272, +124%
Carlisle, North – £150,339, +123%
Source: Halifax Estate Agents

Martin Ellis, chief economist at Halifax Estate Agents, commented: “House prices in cities tend to be higher than the average price in their region. The attraction of shopping and leisure facilities, as well as a short commute for workers means that there will always be demand to live in cities.

Many cities have also benefited from urban regeneration programmes that have seen the wide scale re-development of old industrial areas and canal side warehouses into residential properties.

The strong performance of smaller cities, in particular, highlights that homebuyers are looking for attractive places to live in which also offer good transport links, easy commuting and convenient shopping.”

Most Expensive Cities in the UK
Westminster, Greater London – £601,821 (Average Price Sept 2007)
City of London, Greater London – £446,329
Winchester, South East – £379,643
Oxford, South East – £345,936
St. Albans, South East – £345,022
Truro, South West – £322,834
Chichester, South East – £316,891
Bath, South West – £298,905
Cambridge, East Anglia – £295,339
Brighton and Hove, South East – £266,457
Source: Halifax Estate Agents