HOUSE prices in a Sussex town are growing at the third fastest rate in the country.

Property prices in Hastings have risen by 8.2 per cent since last May, according to data from Zoopla's latest House Price Index.

It puts Hastings third in the country for the highest level of price growth.

Rochdale in Greater Manchester came top, where prices are growing at a rate of 9.9 percent, and Bolton is second, at 8.7 per cent.

Grainne Gilmore, head of research at Zoopla, said: "Annual house price growth in Hastings is up 8.2 per cent - amongst the highest in the country over the past year.

"In the context of property prices on the south coast, Hastings represents good affordability, particularly when compared to some of its more established neighbours such as Brighton.

The Argus: House prices in Hastings rose by 8.2 per cent in the 12 months to May 2021House prices in Hastings rose by 8.2 per cent in the 12 months to May 2021

"Demand has risen, but isn’t being matched by supply, which is putting upward pressure on prices."

Across the UK, house prices have increased by an average of £10,246 per property over the past 12 months, which is the largest rise in value recorded since October 2016.

The price growth means 1.8 million homes will be lifted into a higher stamp duty bracket.

Zoopla said although UK buyer demand is down 28 per cent from its pandemic-peak, it remains 55 per cent higher than the average recorded in the more "normal" market of 2019.

The largest share of demand is for properties up to £250,000, with people searching for more space, an increased number of first-time buyers and those seeking to make lifestyle changes amid the pandemic.

Chancellor Rishi Sunak introduced a stamp duty holiday in England and Northern Ireland in July last year to boost the housing market.

It means buyers pay no stamp duty on the first £500,000 of the purchase price, provided the purchase completes before tomorrow.

The threshold at which stamp duty begins falls to £250,000 on Thursday, July 1, and returns to the pre-pandemic level of £125,000 in September.

First–time buyers can purchase homes costing up to £300,000 without incurring stamp duty from Thursday.

The Argus:

Ms Gilmore added: "The stamp duty holiday boosted demand in the housing market, yet buyer demand remains elevated despite the initial holiday ending – signalling that the once-in-a-generation ‘reassessment of home’ has further to run this year.

“Demand may ease further as the reopening of the economy allows people to do more and travel more widely.

“The total stock of homes for sale continues to run well below historical norms, and this will underpin pricing.

"At the same time, it may also constrain potential activity, especially for buyers looking for family houses.

"Even so, we forecast this year will be one of the busiest for the housing market since the global financial crisis - with 1.5 million residential transactions.”