Royston experienced the second highest increase in average house prices across the UK’s major towns and cities last year, according to new research.

The town, which lies around 50 miles north of London, saw its average house prices increase from £299,905 in 2014 to ££357,049 in 2015 – a rise of 19.1 per cent.

The surge left the town just shy of the top spot, coming in behind the 22.2 per cent increase in Newham, Greater London, whose average property price went up from £261,399 to £319,522.

Tony Green, partner at Royston estate agents William H Brown, said he was not surprised by the increase but had not expected it to be quite so big.

He told the News: “I think the reason you are seeing this is there’s the Cambridge draw – people want to live near Cambridge but can’t afford the Cambridge prices.

“There are also financial downsizers [from London] and we are only 35 minutes from London by train so it’s very commutable for them to go back that direction.

“There’s a massive pressure on the market round here at the moment. We have sold more houses this year than we have put on the market so our stock is dwindling.”

The research, carried out by Halifax, also highlighted that all of towns listed in the top 10 for increased average property prices were either in London or the South East.

And while the increasing house prices will eventually need to level out, Mr Green said that might not happen any time soon.

He added: “The market has to level out at some point otherwise it will implode but at the moment the only thing we are seeing is demand.”

In data looking solely at locations outside of London and the South East, Huntingdon came in fourth highest for its average house price increase, which rose 13.6 per cent from £209,074 to £237,407.

Martin Ellis, housing economist at Halifax, said the rise in property prices in the South East and London reflected people moving further afield to find affordable homes within commuting distance.

He added: “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.”

At the opposite end of the scale, Merthyr Tydfil in Wales clinched the top spot for the biggest fall in its average house prices, which fell by 3.8 per cent from £108,147 in 2014 to £103,983 in 2015.

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