11,635 buys 1m² of a home in Kensington & Chelsea as London boroughs dominate most expensive properties in Britain

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1 23/06/ NOT FOR BROADCAST OR PUBLICATION BEFORE HRS ON TUESDAY 23 JUNE The Halifax House Price Per Square Metre Survey examines the movement in house prices on an average price per square metre (m 2 ) basis in 331 UK towns (including 32 London boroughs which have been classified as towns for this research). 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 ,635 buys 1m² of a home in Kensington & Chelsea as London boroughs dominate most expensive properties in Britain 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 fetches a high price per square metre, including Altrincham in Cheshire, a number of towns in Warwickshire and the Scottish cities of Edinburgh and Aberdeen. There has been a marked widening in property prices per square metre between southern England and the rest of Britain since Prices per square metre have risen by 388% in Great London compared with a national increase of 227%. MOST EXPENSIVE AREAS The Made in Chelsea borough of Kensington & Chelsea is Britain's most expensive area with an average price of 11,635 per m 2 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 m 2 with Westminster having the next highest prices at 9,571 per m 2. Sixteen areas all in Greater London - have an average price in excess of 5,000 per m 2 which is four more than last year. (Table 1) Outside southern England*, Altrincham in Cheshire remains the most expensive town with an average price of 2,446 per m 2. Altrincham is followed by a cluster of towns in the West Midlands: Solihull ( 2,367), Warwick ( 2,363) and Leamington Spa ( 2,353). The Scottish cities of Edinburgh ( 2,297) and Aberdeen ( 2,281) are the next most expensive areas outside southern England. (Table 2) 1

2 23/06/ LEAST EXPENSIVE AREAS Five of the towns surveyed have an average price below 1,000 per m 2 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) PRICE CHANGES 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 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) PRICE CHANGES The average price per square metre across Britain has increased by 227% over the past 20 years from 621 in 1995 to 2,033 in. This national figure, however, conceals considerable regional differences. In particular, there has been a marked widening in the north / south property divide since Prices per square metre have risen by 388% over this period in Greater London; more than twice the increases in northern England, Scotland, Wales and the Midlands. (Table 6) All ten areas that have seen the biggest increases in price per square metre over the last 20 years are in London. Over the past five years, Hackney has seen the largest rise since 1995 with an increase of 773% - twice the London average. (Table 7) Only five towns outside southern England have recorded price gains per square metre in excess of the Great Britain average since 1995: Sale, near Manchester, (251%), Harrogate (242%), Leamington Spa (241%), Rushden in Northamptonshire (237%) and Northampton (236%). (Table 8) Craig McKinlay, Mortgages Director, Halifax, said: "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. 2

3 23/06/ 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." ENDS Editors' Notes: *southern England covers East Anglia, South East, South West and Greater London The average price per square metre is sourced from the Halifax House Price Index database and 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 Square metre per dwelling is based purely on the size of the house and does not take account of outdoor space attached to a dwelling. All property prices are based on the average prices per square metre for transactions during the 12 month period to May for each year. 3

4 23/06/ Table 1: Ten Most Expensive towns per Square Metre in Great Britain Town/ Borough 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 Table 2: Ten Most Expensive towns per Square Metre outside Southern England Town 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 Table 3: Ten Least Expensive towns per Square Metre in Great Britain Town 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 4

5 23/06/ Table 4: Biggest Price Increases per Square Metre (%), Town/Borough House Price Year % 5 Year 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 Table 5: al House Prices per Square Metre, Price per M 2 ( ) change - % size per M 2 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% 109 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 5

6 23/06/ Table 6: Biggest Price Increases per Square Metre (%), Town/Borough House Price Year % 20 Year Hackney London 471, , % 5,487 Southwark London 475, , % 5,162 Tower Hamlets London 426, , % 5,111 Lambeth London 458, , % 4,765 Islington London 570,525 1,130 7, % 6,269 Camden London 668,651 1,361 8, % 7,468 Brent London 459, , % 4,331 Newham London 280, , % 2,965 Waltham Forest London 364, , % 3,550 Haringey London 455, , % 4,541 Table 7: Biggest Price Increases per Square Metre (%), outside Southern England Town/Borough House Price Year % 10 Year Sale North West 234, , % 1,529 Harrogate Yorkshire & the Humber 230, , % 1,554 Leamington Spa West Midlands 252, , % 1,664 Rushden East Midlands 162, , % 1,006 Northampton East Midlands 199, , % 1,260 Warwick West Midlands 278, , % 1,626 Wellingborough East Midlands 154, , % 993 Rugby West Midlands 197, , % 1,175 York Yorkshire & the Humber 215, , % 1,381 Altrincham North West 291, , % 1,667 6

7 23/06/ Table 8: al House Prices per Square Metre, Price per M 2 ( ) change - % size per M 2 Greater London 907 4, % 90 South East 742 2, % 107 South West 582 1, % 110 East Anglia 558 1, % 114 East Midlands 508 1, % 111 Wales 456 1, % 117 West Midlands 572 1, % 108 Yorkshire & the Humber 523 1, % 109 North West 542 1, % 109 North 474 1, % 115 Scotland 592 1, % 110 Great Britain 621 2, % 107 "This report is prepared from information that we believe is collated with care, however, it is only intended to highlight issues and it is not intended to be comprehensive. We reserve the right to vary our methodology and to edit or discontinue/withdraw this, or any other report. Any use of this report for an individual's own or third party commercial purposes is done entirely at the risk of the person making such use and solely the responsibility of the person or persons making such reliance. " 7