In Nationwide’s recent survey of 30 towns and cities, almost one third saw double-digit house price growth in 2007.

St Albans remains the most expensive town in the UK, with an average house price of almost £350,000. Belfast saw the fastest rate of house price growth in the UK, rising by £200 a day (£306,698). Oxford also maintained its position as one of the most expensive places to live as prices rose by 13% in 2007 (£339,404), while Cambridge slipped back in the rankings as it only increased by 9% with an average house price of £306,134. London’s house prices grew by 16% with a house now costing, on average, £329,007. Newcastle and Durham saw prices fall by 3% in 2007, so average house prices respectively are £178,309 and £152,902.
Fionnuala Earley, Nationwide’s chief economist, said: “ During 2007, Belfast, Oxford, London, Brighton and Cambridge joined St Albans as towns and cities in the UK where the average house price exceeds £300,000.

“St Albans is still the most expensive town in which to buy a house in the UK. However, Belfast saw the fastest rate of house price growth in 2007, bringing it up to fifth place in the rankings, up from seventh, overtaking both Edinburgh and Cambridge. Prices increased by 32% to take the average house price to £306,698.

“ Oxford maintained its position as the second most expensive town in our sample. However, its boat race rival Cambridge slipped back two places to sixth place.

“In the North, Newcastle and Durham both saw prices fall by 3% in 2007. Durham is the cheapest city in our sample with an average house price of £152,902. Newcastle slipped back three places to 24th place in 2007. House prices fell by the equivalent of £15 per day in 2007 taking the average price of a house in Newcastle to £178,309.

“With an average house price of £257,288, Edinburgh was the only Scottish city to appear in the top ten, coming in at seventh place. However, in terms of house price growth, Aberdeen was the stronger performer with an increase of 25% (£234,041) and an average daily rise of £130 which is almost double that of Edinburgh.”