Shrewsbury house prices increasing by one of lowest rates in country

Data compiled by the Halifax Town House Price Survey shows that house prices in the county town have increased by only one per cent over the past year – 21 per cent lower than the country's top performing town.

The statistics show that the average house price in Shrewsbury during 2014 was £201,653 which rose to £203,734 this year.

Prices in Kensington and Chelsea increased by the same amount, while those in Malvern in Worcestershire went up by only 0.7 per cent and homes in Newton Abbot made a rise of 0.7 per cent.

According to the data the only towns to have see fall in the average house price were Merthyr Tydfil and Colwyn Bay in Wales, Durham and Coalville.

Will Hodnet, director of Shrewsbury-based estate agents Holters, said the town's house prices seemed to have reached a plateau.

He said: "I think it is predominantly to do with new home builds that are coming up in the town and more at the moment.

"The influence of these new developments has meant property prices have plateaued a bit.

"What we do find is that Shrewsbury house prices are already quite high, so it could be that the rest of the market is catching up a little bit.

"We have seen some quite good growth selling at reasonably high prices ourselves, so this might be more a reflection of an average including some who are not.

"London's market is always growing. It is always going to be a couple of years ahead.

"We recently sold the same property in the capital twice with just eight months between the sales and it had increased by £80,000.

"But we have achieved some good figures ourselves this year.

"Little developments in the town or uncertainties – like the decision over A&E services in Shrewsbury – those things do make a difference to people coming into the area."

Newham in London recorded the biggest percentage rise in house with prices 22 per cent higher than in the previous year – from £261,399 to £319,522.

Martin Ellis, housing economist at Halifax, said: "Those areas that have seen the biggest house price increases over the past year are either in outer London or within close commuting distance of the capital.

"Demand in these areas has risen as rapid house price rises in central London in the past few years have caused increasing numbers of people to look for property in more affordable areas.

"A few towns have experienced modest price falls. These areas are typically still suffering from relatively weak employment and economic conditions, which has dampened local housing demand."