London price per square metre rises just 0.5%: Halifax

The Halifax has issued a report that reveals that for the first time in eight years, Greater London house prices per square metre stalled – rising just 0.5 per cent in the 12 months to May.

Increasing from £5,106 to £5,131 per square metre, this is the lowest growth in the UK year-on-year, although this hasn’t stopped London towns still making up the ten most expensive towns per square metre in the country.

The highest annual change was recorded in the middle of the country, with East Anglia, which rose from £2,104 to £2,256 (7 per cent) taking the top spot, the West Midlands going from £1,829 to 1,929 (5 per cent), and the East Midlands coming it at third place, growing from £1,694 to £1,782 per square metre – also 5 per cent.

Aside from Greater London, prices in the North increased from £1,339 to £1,364 (2 per cent), and in the South East, £3,147 to £3,215 (2 per cent again).

Overall, Westminster is the most expensive town in the UK, commanding prices of £9,379 per square metre (with the average size being a modest 67 square meters), and the best value properties are found in Aberdare, where the average size is 121 square meters at £969 each.

Halifax managing director Russell Galley says: “It is no surprise that Greater London is substantially more expensive than anywhere else in the country. Should recent trends persist, prices in the capital will continue to tread water whilst the rest of the country slowly plays catch up.

“While cheaper locations such as Scotland and Wales have started to increase more rapidly over the last 12 months, the prices per square metre in Scotland and Wales mean home buyers can get a lot of house for their money in these regions compared to Southern England.”

Recommended

Sunset over houses

Rents in London climb to 36% of average income

Average rent as a proportion of income in London hit 36.2 per cent in July, compared to 30.8 per cent a year ago, the latest index from HomeLet reveals. For the UK as a whole, rent as a proportion of income rose to 31.8 per cent compared to 28.1 per cent a year ago. Average […]

European property investors return to London

Interest in the London housing market among European investors has returned for the first time following the Brexit vote fallout. The Times reports that the number of homes across the capital sold to a buyer from the European Union rose to 13 per cent in H1, up from 10 per cent in the same period […]

Retirement interest-only mortgages… five things you should know

Tom Gurrie offers some key insights into retirement interest-only mortgages. The rules have changedLast month the FCA redefined retirement interest-only mortgages – RIOs – as standard mortgages, not lifetime, to improve access to borrowing for older consumers, including interest-only borrowers facing shortfalls. Expect a boost in the number of these deals once lenders work through […]

A guide to auction finance in 2017

By Matt Tooth, chief commercial officer, LendInvest Over the coming weeks, property auction houses across the country will begin sending out their catalogues to prospective buyers in time for the first auction series of 2017. It’s an exciting time for investors, well aware of the opportunities the properties on the lot sheets offer them and […]

Newsletter

News and expert analysis straight to your inbox

Sign up