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Merthyr Tydfil has recorded the biggest increase in house prices per square metre (m2) since 2002; a 203% increase from £439 per m2 to £1,331 per m2. So says the Halifax in a new review of the property market.
Seven of the 10 towns that have delivered the highest house price growth over the past 5 years are in Northern Ireland, led by Craigavon and Ballymena. Meanwhile, Kensington & Chelsea has the most expensive property per square metre at an average of £8,386 per m2, while the 10 most expensive UK areas are all in Greater London. The UK average price is £2,158 per m2.
The House Price Per Square Metre Survey examines the movement in house prices on an average price per square metre (m2) basis in 403 UK towns (including 32 London boroughs which have been classified as towns for this research).
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. It 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. Data is sourced from the Halifax House Price Index database.
Meanwhile, 9 of the 10 UK towns that have delivered the smallest house price growth on a per square metre basis since 2002 are in the South East. House prices in Camberley, Waltham Cross and Hoddesdon all grew by 30% over the past 5 years: the lowest rate of increase across the UK over the period. That said, the 10 most expensive towns outside London are in the South East - Weybridge in Surrey coming in as the most expensive town with an average price of £3,901 per m2.
Five of the 10 most expensive towns outside the capital are in Surrey: Weybridge, Godalming, Leatherhead, Dorking and Epsom. The remaining five comprise three towns in Hertfordshire (Harpenden, Rickmansworth and St Albans) and two in Berkshire (Ascot and Windsor).
The Cheshire town of Altrincham is the most expensive town outside southern England with an average price of £2,507 per m2. Stratford upon Avon (£2,453 per m2) is the second most expensive.
Edinburgh is the most expensive Scottish town or city (£2,448 per m2). Cardiff is the most expensive city in Wales (£1,802 per m2) and Belfast is the most expensive in Northern Ireland (£2,291 per m2).
On the other hand, Wishaw in Lanarkshire had the lowest average price (£1,128 per m2) of all UK towns in 2007. Peterlee in County Durham recorded the second lowest price (£1,135 per m2) followed by Sutton in Ashfield (£1,187 per m2).
Five years ago, the 10 least expensive UK towns all had an average property price of less than £600 per m2. Meanwhile, 4 of the 10 least expensive UK towns in 2002 were still among the 10 least expensive in 2007: Llanelli, Barrow in Furness, Accrington and Peterlee.
Martin Ellis, chief economist at Halifax Estate Agents, said: "When looking at property prices on a square metre basis, there has been a huge divergence in house price performance across the UK over the past 5 years, ranging from a rise of 203% in Merthyr Tydfil to 30% in Camberley.
"Despite these differences, there has been little change in the composition of those areas with the most and least expensive properties. The same 10 London boroughs are still the most expensive areas in the country whilst 4 of the least expensive towns in 2002 remain amongst the 10 least expensive places."
17 March 2008 © Moneyextra.com
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