Boroughs in London continue to dominate the UK’s list of the most expensive property locations on a per square metre (m2) basis.
The Halifax House Price Per Square Metre Survey examines the movement in house prices on an average price per square metre (m2) basis in 329 GB towns (including 32 London boroughs which have been classified as towns for this research).
Halifax says average price per square metre is a useful measure for house price comparison, helping to adjust for differences in property size and type across areas. The average price per square metre is calculated by dividing the average house price by the average square metres per property (excluding external space). The price per square metre can be converted into price per square foot by dividing by 10.7639104.
Outside of southern England there are nine areas that fetch a higher property price per m2 than the national average of £2,260, including Altrincham, Sale and Cheadle in the North West, and the West Midlands towns of Leamington Spa and Solihull.
Over the past 20 years, property prices per m2 in southern England have risen significantly ahead of the rest of Britain, with prices growing by 402% in Greater London compared with a national increase of 236%.
Hackney has seen the largest increase in average prices per m2 since 1997 with prices rising from £814 to £6,942 (753%), nearly twice the London average (402%).
The average price per m2 across Britain has increased by 236% over the past 20 years, from £672 in 1997 to £2,260 in 2017. However, this national figure conceals considerable regional differences, with Greater London increasing by 402% in comparison to 147% in Scotland.
Nine of the 10 areas that have seen the biggest increases over the last 20 years are in London, with Hove the only other town to make the list. Outside southern England, 12 towns have recorded price gains in excess of the national average since 1997.
In the last five years alone, house prices per m2 have risen by 34%, with all regions experiencing growth of at least 12%. The London borough of Waltham Forest saw the largest growth since 2012 (93%).
Greater London has experienced substantially faster growth than elsewhere in Britain with its average increase of 57%, almost five times that in Scotland (12%).
Russell Galley, managing director of Halifax, said: “House price per square metre can be a useful measure for house price comparison as it helps to adjust for differences in the size and type of properties between locations.
“Unsurprisingly, there are parts of central London that are substantially more expensive than anywhere else in the country. However, we can see a number of notable pockets emerging outside the South of England, particularly in the West Midlands and North West. Over the last 20 years the gap between southern England, particularly London, and the rest of the country has increased substantially – a trend that has continued during the last five years.”
Kensington and Chelsea remains Britain’s most expensive area with an average price of £11,192 per m2. Despite dropping 1% since last year, the borough is nearly five times the national average and the only area in Britain with an average price above £10,000 per m2. 20 areas – all in Greater London – have an average price in excess of £5,000 per m2. This is five more than last year with Barnet, Kingston upon Thames, Lewisham, Waltham Forest and Harrow all joining the list.
Of the 10 most expensive towns outside southern England, Altrincham in the North West is the most expensive with an average price of £2,834 per m2, with only York (£2,233) having an average price per m2 below the national average of £2,260.
The research found that only two towns in Great Britain had an average price below £1,000 per m². Port Talbot in Wales is the least expensive town with an average price at £983 per m², followed by Nelson in the North West (£998). Six of the 10 towns with the lowest prices per square metre are outside England, with four in Wales and two in Scotland.
