An area of Birmingham named the poorest place in the UK as recently as last year now has the fastest-rising property prices in the country, according to a report.
Prices in the B16 postcode of the city, which covers the Ladywood area, rose by 17% in the 12 months to July, far outstripping any part of London, where the property market has cooled rapidly since the EU referendum.
The average house price in Ladywood jumped to £172,498, from £147,121 the year before, according to a report by the mortgage arm of Barclays bank, with local estate agents pointing to an influx of young professionals and investors amid the HS2 rail project and the building of a “super hospital” in nearby Smethwick.
Ladywood, on the western edge of the city centre, has long suffered from a reputation as a crime-ridden jumble of estates, high unemployment and low pay. Last year it was named by the End Child Poverty campaign group as having theworst levels of child poverty in the UK.
But cheap housing – it is possible to buy a three-bed terraced house in the area for £120,000 – has prompted a new wave of buyers to move in.
The Barclays report, based on data from property analysis firm Hometrack, reveals that most of Britain’s property hotspots are previously ignored areas where prices were low, often industrial wastelands that are going through regeneration.