Scottish locations lead postcode table of UK’s property hotspots

In Scotland’s capital city, those living in EH2 have seen their property values rise on average by nearly £50,000, or 14 per cent, in just one year, the bank said.

And in Glasgow, the Finneston area that has undergone such a dramatic regeneration in recent years also enjoyed an identical 14 per cent rise, an increase of £22,000, as recorded by the index identifying the best performing postcodes from the UK’s top twenty cities.

Scotland’s two biggest cities’ most active postcodes came second only to B16, covering Ladywood in Birmingham.

Ladywood in Birmingham, which benefits from an abundance of restaurants and artisan coffee shops, has seen property prices rise to an average of £171,121 in the past 12 months, an increase of 17 per cent – significantly more than the 5 per cent increase experienced by the city as a whole.

Barclays said regional cities such as Birmingham have over-taken London when it comes to the annual rate of house price growth as jobs growth and attractive affordability boost demand for housing and push up house prices.

Following a decade of significant property price growth in London, the average increase there was down to just 2 per cent in the last year. The trendy area of Clapton saw the largest increase in property prices, but at only 5 per cent, this was still significantly below the figures that home owners have come to expect in the city.

Across the Irish Sea, Belfast’s property market on the whole has also struggled in the past year, although the postcode BT5 has seen house price growth significantly outperform that of wider city. With more affordable housing, a number of good schools in the area and its position within a commuter belt supported by good transport links, the price growth is likely as a result of more young families moving to the area. The area also has a village feeling with coffee shops, delis and traditional grocers and butchers ensuring it remains high on the agenda for potential buyers.

The Welsh capital, Cardiff, has seen steady, if not exceptions, house growth in the past year. The area of Adamsdown in particular has seen healthy growth, with the average price of a property in the postcode now over £170,000. The area has seen significant redevelopment in recent years, partly to help accommodate the many students who have moved to the area to study at the University of South Wales which is located there, and this will have contributed significantly to its position in the Postcode Property Index.

Craig Calder, Director of Barclays Mortgages said: “It is fascinating to see the individual postcodes where property prices are growing at a very fast pace, particularly when they are significantly outstripping the city’s average growth. It demonstrates how changeable the property market currently is, not just around the UK but within each city.

“We also understand that it can be hard to really get a grip of what the property market is doing, making it challenging for both potential buyers and sellers. As such, we welcome both existing and new mortgage customers to speak with their mortgage broker or visit their local Barclays branch to talk to our colleagues about taking the next step in their property journey.”