Experts say the increased cost of living is expected to slow down house price growth this year.
However, in certain areas around the country, these prices will continue to rise.
In order to analyse the neighbourhoods that have potential for prices to increase, estate agents Hamptons has looked at the UK postcodes that have the biggest value gaps between the most expensive quartile of houses and the cheapest.
In the north east, the Hartlepool postcode sees average property in the cheapest quartile of houses cost £53,000. This is £166,800 less than the typical price in the most expensive – a value gap of 314%.
Lottie Appleby, of Manners & Harrison estate agents in Hartlepool, says that first-time buyers heading up north – looking for value for money and coastal spots – is a factor driving prices up there.
She tells The Telegraph: ‘They are coming with much bigger budgets, up to £400,000. Before, no first-time buyer was spending more than £200,000 or £150,000.’
The value of these properties is also up by a third since the start of the pandemic – with a three-bedroom semi-detached house previously costing £150,000, now selling for £200,000.
Demand also means there are less properties on offer – making the market more competitive.
‘Normally, we would have a couple of hundred properties for sale. Right now we only have 90,’ Lottie adds. ‘For every house that we list we have 10 buyers, and best and final offers are common.’
Experts add that another key indicator for potential price growth is how close an area’s average house price is to its pre-financial crisis peak.
Areas where prices only just exceeded 2007 levels, following rapid price growth in 2021, include Darlington, Redcar and Cleveland, and Blackpool – which are, interestingly, areas almost exclusively in the north of England.
However, many of the areas with the biggest differences in price are also in the most expensive parts of the country.
In the capital, London’s NW1 postcode (which includes Regent’s Park and Primrose Hill, but also Camden Town) has the second largest percentage price gap in the country, at 243%.
Roisin O’Neil, from Marsh & Parsons estate agents, says: ‘A property in Primrose Hill will cost £1,300 per sq ft, while an ex-local authority property in Camden will cost £600 per sq ft.’
Likewise, Notting Hill and Holland Park’s W11 postcode has a gap of £4.225million, or 198% – with cheapest houses costing on average £2.138million, and more expensive ones at £6.363million.
Another London postcode with big differences is TW10 – which includes Ham Common, Petersham and Richmond Park in the south west of the capital – where the gap is £1.5million, or 205%.
The top hotspot for the Midlands is Edgbaston’s B15 postcode, in Birmingham – where the value gap is £705,000, or 186%.
Likewise, the south west has two notable locations – with a £513,130 price gap (193%) in Cornwall’s Padstow (PL28 postcode) and a £393,750 (170%) difference in Ottery, St Mary’s (EX11 postcode).
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