These Yorkshire towns and cities saw the biggest house price increases in 2021

House price analysis of 18 local authority districts in Yorkshire and the Humber found that in Wakefield, the value of a home grew by an average of 16 per cent, from £154,952 in October 2020 to £180,171 in October 2021. In cash terms, this is an increase of £25,219 and just below the median full-time annual earnings of £28,166 for the area, the society said.

Rotherham, Selby and Scarborough are in joint second place with average price growth of 14 per cent. According to Yorkshire Building Society, Rotherham, whilst starting from a low base (£144,582 to £165,278), has perhaps been more attractive compared to the relatively more expensive Sheffield. Selby benefits from its proximity to rural areas and Scarborough, with its coastline, is likely to be benefitting from changing buyer behaviours since the start of the pandemic.

At the other end of the spectrum, Harrogate recorded the lowest average price increase of seven per cent from £288,402 to £307,602 over the period, but still benefits from a relatively high average property value.

Nitesh Patel, strategic economist at Yorkshire Building Society, said: “There are some strong drivers that explain the extraordinary price growth seen in many parts of the county. Low borrowing costs and pent up demand are important factors, particularly for homeowners with high levels of equity looking for more space.

"The increased availability of low deposit mortgages this year will also have been attractive for first-time buyers, in addition to unemployment falling over the last year and the jobs market getting stronger since the phased re-opening in April.

“The stamp duty holiday with zero tax payable on purchase price of up to £500,000 (and then lowered to £250,000) is another significant driver, particularly for second time movers and first-time buyers will have benefitted from those taking their next step and moving along the property ladder.

“However, two impacts of the pandemic might be even stronger drivers. Due to the restrictions and less travelling, many UK households saved more than they normally would have, estimated at around £170bn of “excess” savings.

"And the second factor is the pandemic has encouraged a once in a lifetime opportunity to revaluate their housing needs. Buyers are seeking out more space to work from home as well as more outdoor space, which may explain why price growth in places like Scarborough has been so strong.

“In the near-term housing demand is likely to exceed supply, however with prices at an elevated level in comparison to local earnings, this should dampen activity and as a result we’ll see more modest price increases going forward in 2022. That said, buyers revaluating their housing needs probably has longer to run.”

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James Mitchinson