Where are the most recession-proof property hotspots in the UK?

Based on house price growth in the last recession

 

The recent news that the UK has tipped into the largest recession was a blow to the property market. Although a decline in house prices now seems inevitable. Lettings and Estate agent, Benham and Reeves (opens in new tab) have revealed the most recession-proof property hotspots in the UK, based on the last recession.

Related: House prices see the largest drop since 2009 reveals Nationwide (opens in new tab)

Benham and Reeves looked into the house price growth during the last recession in 2008 to reveal the pockets of the UK that performed best. House prices fell by -12.9 per cent overall between April 2008 and June 2019. However, five areas actually saw house prices increase.

The most recession-proof property hotspots

In the Orkney Islands, of the coast of Scotland, prices rose by 21.7 per cent. In the Western Isle, they jumped by 18.4 per cent. Powys in Wales, saw prices rise by 3.1 per cent. While in Moray they rose by 2.7 per cent, and by 1.4 per cent in the Scottish Highlands.

exterior with brick wall and garden area

(Image credit: future PLC/Brent Darby)

Overall, Northern Ireland was the hardest hit by the last recession with prices dropping by - 23.9 per cent. The East of England saw a drop of -14 per cent, with London dropping by -13.8 per cent. Scotland saw the lowest impact on house prices, with them dropping by just - 5.2 per cent.

However, before we start panicking about house prices dropping it is important to note that the housing market is performing strongly at the moment. The latest Zoopla (opens in new tab) house price index revealed that house prices were likely to rise by 2-3 per cent by the end of the year.

white wall with flower vase on table and sofa with cushions

(Image credit: Future plc)

'News of a recession will no doubt bring another wave of doom and gloom from house price profits but that simply isn't what we're seeing on the ground,' explains Marc von Grundherr, Director of Benham and Reeves. 'And with such a tidal wave of activity returning, it's unlikely to materialise for many many months, if at all.'

exterior with dark grey wall and plants on pots

(Image credit: Future plc)

'Our research shows a recession doesn't necessarily mean a cataclysmic decline in property prices,' he adds. 'In fact, some areas weathered the last recession pretty well considering the wider economic picture. The vast majority of areas saw a quick recovery in property prices in the years that followed.

Related: This is how long it will actually take you to sell your house post-lockdown (opens in new tab)

'For those investing now the long-term, the value of their bricks and mortar investment should come good when they do come to sell. When you also consider the saving on offer with the current stamp duty holidays in some parts of the UK, now is a great time to get on the ladder.'

Rebecca Knight
Rebecca Knight

Rebecca Knight has been the Deputy Editor on the Ideal Home Website since 2022. She graduated with a Masters degree in magazine journalism from City, University of London in 2018, before starting her journalism career as a staff writer on women's weekly magazines. She fell into the world of homes and interiors after joining the Ideal Home website team in 2019 as a Digital Writer. In 2020 she moved into position of Homes News Editor working across Homes & Gardens, LivingEtc, Real Homes, Gardeningetc and Ideal Home covering everything from the latest viral cleaning hack to the next big interior trend.