Montrose in Angus recorded the biggest house price increase (39%) in 2007 according to Halifax Estate Agents.

Average house prices in Montrose rose from £123,494 in 2006 to £172,156, an increase of 39% in the survey of towns recording the largest house price rises over the past year.

Winchester came in at second place with prices increasing by 38% to £399,765 followed by Billericay in Essex where prices rose by 35%, to an average of £363,265.

The two towns mirror 2007’s hotspots for property - Scotland and the South East.

In Scotland employment has risen by 125,000 in the last five years, whilst in 2006 immigration inflows increased the population by 22,000. Property is also relatively affordable in Scotland, providing a springboard for further significant house price growth. In the South East, unemployment is still very low; the region has 5 of the 6 lowest unemployment local areas in the UK and 27 areas have an unemployment rate below 1%.

The 10 Towns with Highest GB House Price Growth in 2007
1 - Montrose, Scotland. 2007 Average Price:£172,156 +39%
2 - Winchester, South East - 2007 Average Price: £399,765 +38%
3 - Billericay, South East - 2007 Average Price: £363,265 +35%
4 - Peterhead, Scotland - 2007 Average Price: £156,875 +33%
5 - Stourbridge, West Midlands - 2007 Average Price: £264,130 +31%
6 - Ryde, South East - 2007 Average Price: £212,564 +30%
7 - Henley on Thames, South East - 2007 Average Price: £642,672 +29%
8 - Inverurie, Scotland - 2007 Average Price:£231,623 +29%
9 - Greenock, Scotland - 2007 Average Price: £140,512 +29%
10 - Southwark, London - 2007 Average Price: £367,306 +26
Source:Halifax

Expense
Halifax also reported that southern towns are still the most expensive to live in. There are 75 towns in Britain where the average price is above £300,000, 68 are in London and the South East. Leading the pack is Kensington and Chelsea with an average price of £774,361. Henley on Thames, which recorded one of biggest price increases during the year, is the second most expensive with an average property value of £642,672. Westminster is the third most expensive place in Britain where the average price is £610,516.

Ilkley is the most expensive town outside southern England with average prices of £353,557. Wilmslow and Altrincham are the next two most expensive areas in the North with average prices of £333,970 and £332,951 respectively.

10 Most Expensive Towns to Live in the GB 2007
1 - Kensington and Chelsea, London
2 - Henley on Thames, South East
3 - Westminster, London
4 - Hammersmith and Fulham, London
5 - Camden, London
6 - Weybridge, South East
7 - Ascot, South East
8 - Leatherhead, South East
9 - Richmond upon Thames, London
10 - Godalming
Source: Halifax

Leatherhead, Richmond upon Thames and Godalming are new entrants into the ten most expensive places in Britain, after recording an increase of 10%, 8% and 9% respectively in average price during the year.

Nelson in Lancashire is the most affordable town In Britain with average prices of £108,320 (the only town with prices below £110,000). Although several Scottish towns had some of the largest price increases in 2007, Scotland still has four of the ten most affordable towns in Britain. Cumnock in Ayrshire is the second most affordable town in Britain. For the last four years Lochgelly in Fife had been the most affordable town in Britain, today it is in sixth place with an average price of £118,838 compared to £97,121 in 2006.

Gosport with an average price of £143,028 is still the only town in southern England where the average price is below £150,000. Both South Ockendon (£168,012) and Clacton on Sea (£168,137) in Essex are the next most affordable towns in the South East. Barking and Dagenham has the least expensive housing in London with average price of £202,000.

Martin Ellis, Chief Economist Halifax Estate Agents, said: “In 2007 thirteen of the top twenty towns recording the biggest price rises are from Scotland and the South East.

In 2006 the most affordable town was Lochgelly with an average price of £97,121; today this distinction goes to Nelson with an average price of £108,320. There are now no towns in Britain with an average price below £100,000. Nearly half of all towns have an average value above £200,000.

Strong economic conditions, highlighted by high employment levels, have boosted housing demand and driven up prices. Relatively good housing affordability in Scotland has also permitted strong price growth in several towns north of the border.”