Falling property values during 2011 have widened the gap between less popular rural homes and those in more desirable areas, creating hot-spot regions across the UK.

Despite the lack of general market confidence, there are noticeable differences across the regions, with some areas profiting from money being invested from the UK and overseas. Demand for residential property in the best areas has generated a hot-spot mentality, with buyers looking to settle near to the more prosperous regions where unemployment is low and there are a wide range of services.

Agents have noticed hot-spots appearing on the outskirts of cities, market towns and the traditionally desirable areas of the countryside. Michael Fiddes from Strutt & Parker National Sales comments "The lack of economic and house price confidence has prompted buyers to look for safe havens, where they feel the price of the home will take less of a hit. This has seen the emergence of a hot-spot trend, where buyers will only consider homes in certain places. These areas tend to be clustered around the more popular destinations that offer good transport links, the best schools and first-rate amenities."

For the regions that don't fall into this category, prices are at a record low. As areas across the UK deal with the challenges of high unemployment, a reduced public sector and a fall in salaries, places that responded better, such as London and the Home Counties and Edinburgh, have common advantages. They all have large private sector economies, lower rates of unemployment and more resilient house prices.

The demand for hot-spots and the lack of equity flow into less desirable regions has created one of the largest value gaps ever, making less sought after areas look good value for money. Prices have also indicated a North-South divide with valuations in the Midlands and the North 24% below their 2007 peak.

Fiddes adds "Owners from the less desirable areas are looking to move away. This has resulted in a lack of investment and demand, expanding the price gap further. It results in homes that are situated in less fashionable places looking better value than for many years, a factor that could stimulate buying activity in the near future."