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£11,635 buys 1 square metre of a home in Kensington & Chelsea

23rd June 2015

New research from Halifax shows that boroughs in London continue to dominate the country’s list of most expensive places for property on a per square metre basis.

There are, however, pockets outside Southern England where property also fetches a high price per square metre, including Altrincham in Cheshire, a number of towns in Warwickshire and Edinburgh and Aberdeen.

There has been a marked widening in property prices per square metre between southern England and the rest of Britain since 1995. Prices per square metre have risen by 388% in Great London compared with a national increase of 227%.

The most expensive areas

Kensington & Chelsea is Britain’s most expensive area with an average price of £11,635 per m2 – nearly six times the national average of £2,033.  The borough is the only area in Britain with an average price above £10,000 per m2 with Westminster having the next highest prices at £9,571 per m2. Sixteen areas – all in Greater London – have an average price in excess of £5,000 per m2 which is four more than last year. (Table 1 below)

Outside southern England, Altrincham in Cheshire remains the most expensive town with an average price of £2,446 per m2. Altrincham is followed by a cluster of towns in the West Midlands: Solihull (£2,367), Warwick (£2,363) and Leamington Spa (£2,353). Edinburgh (£2,297) and Aberdeen (£2,281) are the next most expensive areas outside southern England. (Table 2 below)

The least expensive areas

Five of the towns surveyed have an average price below £1,000 per m2 – less than half the average for Great Britain. Aberdare in south Wales has the lowest average price, at £910 per m². This is less than one tenth of the average price per square metre in Kensington & Chelsea.

All ten of the towns with the lowest prices per square metre are outside the south of England. Four of the ten towns with the lowest average price per square metre are in Scotland: Wishaw (£926), Airdrie (£998), Greenock (£1,004) and Coatbridge (£1,004). Three are in Wales: Merthyr Tydfil (£967) and Neath (£1,005) in addition to Aberdare. The three English towns with the lowest home prices on a per square metre basis are Accrington (£990), Scunthorpe (£1,022) and Blackpool (£1,052). (Table 3 below)

Price changes 2010-2015

The ten areas recording the highest house price growth on a per square metre basis over the last five years are all London boroughs. Hackney (71%) recorded the biggest increase over the five year period closely followed by Southwark (70%). (Table 4)

Nationally, house prices per square metre have risen by 18% since 2010 from an average of £1,719 to £2,033 in 2015 with increases across all regions. Greater London has experienced substantially faster growth than elsewhere in Britain with an average increase of 45%. The South East (22%) recorded the next biggest rise. Price increases have been much more modest in many other parts of the country with the smallest rises in the North (3%) and Scotland (5%). (Table 5)

Craig McKinlay, mortgages director, Halifax, says: “House price per square metre is a useful measure for house price comparison because it helps to adjust for differences in the size and type of properties between locations.

“Parts of central London are substantially more expensive than anywhere else in the country. Nonetheless, there are a number of notable pockets outside the south of England where property prices are also high price per square metre. There has been a clear widening in the gap between southern England, particularly London, and the rest of the country over the past 20 years – a trend that has continued during the last five years.”

Table 1: Ten Most Expensive towns per Square Metre in Great Britain

Town/ Borough Region Price per M2 (£) 2015
Kensington and Chelsea London               11,635
Westminster London                 9,571
Camden London                 8,829
Hammersmith and Fulham London                 8,306
Islington London                 7,399
Wandsworth London                 6,761
Richmond upon Thames London                 6,265
Hackney London                 6,196
Tower Hamlets London                 5,980
Southwark London                 5,962

Source: Halifax; 12 months to May

 

Table 2: Ten Most Expensive towns per Square Metre outside Southern England

Town Region Price per M2 (£) 2015
Altrincham North West                 2,446
Solihull West Midlands                 2,367
Warwick West Midlands                 2,363
Leamington Spa West Midlands                 2,353
Edinburgh Scotland                 2,297
Aberdeen Scotland                 2,281
Harrogate Yorkshire & the Humber                 2,196
Sale North West                 2,138
Cheadle North West                 2,033
York Yorkshire & the Humber                 2,024

Source: Halifax; 12 months to May

 

Table 3: Ten Least Expensive towns per Square Metre in Great Britain

Town Region Price per M2 (£) 2015
Aberdare Wales                    910
Wishaw Scotland                    926
Merthyr Tydfil Wales                    967
Accrington North West                    990
Airdrie Scotland                    998
Greenock Scotland                 1,004
Coatbridge Scotland                 1,004
Neath Wales                 1,005
Scunthorpe Yorkshire & the Humber                 1,022
Blackpool North West                 1,052

Source: Halifax; 12 months to May

Table 4: Biggest Price Increases per Square Metre (%), 2010-2015

Town/Borough Region Average House Price 2015 £ Price per M2 (£) 5 Year % 5  Year £
2010 2015
Hackney London 471,164 3,618 6,196 71% 2,579
Southwark London 475,219 3,508 5,962 70% 2,453
Waltham Forest London 364,359 2,498 4,216 69% 1,717
Lewisham London 351,565 2,625 4,253 62% 1,629
Ealing London 464,002 3,122 5,046 62% 1,923
Haringey London 455,590 3,357 5,423 62% 2,066
Tower Hamlets London 426,660 3,720 5,980 61% 2,260
Lambeth London 458,048 3,498 5,586 60% 2,088
Brent London 459,304 3,234 5,134 59% 1,900
Greenwich London 350,606 2,410 3,823 59% 1,413

Source: Halifax; 12 months to May

Table 5: Regional House Prices per Square Metre, 2010-2015

  Price per M2 (£) 2010 Price per M2 (£) 2015 2010-2015 change – % Average size per M2 2015
Greater London 3,062 4,426 45% 90
South East 2,197 2,681 22% 107
East Anglia 1,564 1,835 17% 114
East Midlands 1,306 1,458 12% 111
West Midlands 1,435 1,602 12% 108
South West 1,781 1,959 10% 110
Yorkshire & the Humber 1,293 1,410 9% 109images
North West 1,324 1,434 8% 109
Wales 1,191 1,277 7% 117
Scotland 1,414 1,490 5% 110
North 1,203 1,234 3% 115
Great Britain 1,719 2,033 18% 107

Source: Halifax; 12 months to May

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