It can pay to live near a Premier League football ground, the Halifax has claimed.
New research from the lender has found that the average house price in the postal districts of the 20 top flight football clubs which began the 2012/13 season at the weekend has risen by 137% (£209,975) over the last decade – from £152,891 in April 2002 to £362,866 in April 2012. This is equivalent to a weekly rise of £404.
Meanwhile, over the same period house prices across England and Wales as a whole increased by 90%.
Halifax also found that house prices in the Premier League postal districts have risen by an average of 1.3% over the past year. This compares to a 2.7% fall across England and Wales.
Four of the five Premier League postal districts that have recorded the biggest house price increases over the last decade are home to stadiums that were built in the last 15 years.
Property prices close to Manchester City saw by far the biggest increase over the past 10 years. Homes within the postal district of the Etihad Stadium have risen by an average of 271% over the past decade. This increase is almost double the rise in prices close to Aston Villa’s home ground (126%), the second best performing Premier League postal district. Sunderland recorded the third biggest rise (125%), followed by Swansea City (115%). In contrast, Newcastle United finished rock bottom of the Premier League house price table with the value of properties close to St James Park dropping by 7% since 2002.
Buyers must spend almost 11 times average earnings to live near their team’s Premier League ground. The average Premier League house price of £362,866 in 2012 is, on average, 10.8 times higher than national average gross annual earnings. This is almost double the multiple of 6.0 in 2002.
All five of the least affordable Premier League postal districts are in the capital. The London postal district (SW6) – home to both Chelsea and Fulham Football Clubs – is the least affordable Premier League postal district with the average property price of £749,530 over 14 times (14.4) gross average earnings in the area. Queen’s Park Rangers (9.1) is the second least affordable postal district, followed by the mighty Tottenham Hotspur (6.5). West Bromwich Albion (4.9) is the least affordable Premier League postal district outside southern England.
In contrast, the Premier League postal district L4 – home to Liverpool and Everton Football Clubs – is the most affordable Premier League postal district, with the cost of the typical home just over double (2.3) gross annual average earnings.
“House prices close to the nation’s most iconic football stadiums have risen substantially over the past decade, particularly in the areas near to some of the newest venues,” said Martin Ellis, housing economist for the Halifax.
“This partly reflects the local regeneration that typically takes place alongside the building of modern sporting arenas, including improved transport links.
“The rise in property values does, however, come at a cost with home affordability deteriorating significantly over the last ten years for those hoping to live near their favourite football ground.”