A new report by Octane Capital has revealed that house prices in 21% of UK local authorities in the UK are growing at a rate higher than the current consumer price index inflation figure of 10.1%. 

The study shows the Shetland Islands have seen the highest increase in house prices, with a 24.5% growth rate in the last year. 

Other areas that make up the top ten among 75 inflation-busting areas of the UK property market include Carmarthenshire, Fylde, Forest of Dean, Broxtowe, Pendle, Bolsover, Rochford and Charnwood.

Jonathan Samuels, CEO of Octane Capital, commented: “Despite the wider economic landscape the UK property market continues to hold its own and while the high rates of house price growth seen in recent times may have returned to normality, homeowners continue to see a return on their bricks and mortar investment across many areas of the market. 

“In fact, in some areas, prices have continued to climb at a substantial rate and so much so that they’ve outstripped the current high rate of inflation that continues to push up living costs.” 

Samuels added: “Of course, with the Bank of England seeking to curb inflation via a string of interest rates, it looks likely that the cost of homeownership could set to become that little bit more expensive next month. 

“However, for those who can achieve it, a bricks and mortar investment continues to be one of the safest you can make, even in the current economic climate.”