A new analysis of rising property values measured in price per square metre, suggests one location has risen 773 per cent in the past 20 years - and it is not in prime central London.
In absolute terms it almost goes without saying that Kensington & Chelsea is Britain's most expensive area with an average price of £11,635 psm – nearly six times the national average of £2,033 says the Halifax, which has undertaken the analysis.
The borough is the only area in Britain with an average price above £10,000 psm with Westminster having the next highest prices at £9,571. Sixteen areas – all in Greater London - have an average price in excess of £5,000 per m2 which is four more than last year, when Halifax undertook a similar survey.
Outside southern England, Altrincham in Cheshire remains the most expensive town with an average price of £2,446 psm 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.
Five of the towns surveyed have an average price below £1,000 psm – less than half the average for Great Britain. Aberdare in south Wales has the lowest average price, at £910, which is less than a tenth of the average price per square metre in Kensington & Chelsea.
All 10 of the towns with the lowest prices per square metre are outside the south of England. Four 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).
The average price per square metre across Britain has increased by 227 per cent over the past 20 years from £621 in 1995 to £2,033 in 2015.
But the Halifax notes there has been a marked widening in the north / south property divide since 1995.
Prices per square metre have risen by 388 per cent over 20 years in Greater London, more than double the increases in northern England, Scotland, Wales and the Midlands.
The 10 areas that have seen the biggest increases in price per square metre over the last 20 years are in London. Hackney has seen the largest rise says the Halifax - in the past 20 year price psm has increased 773 per cent, or twice the London average.
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No surprises in that Kensington and Chelsea have celebrated tremendous growth. It's particularly fascinating to have witnessed the transformation of Hackney over the years from desolate to vibrant, now an exciting place to live for all demographics.
London, London, London - it operates on a whole different level, doesn't it? Totally unsustainable for the long-term, of course, but people won't worry about that until the big crash happens, which it will.
The idea that prices will just keep going up, so we don't need to worry about negative equity or a property crash, is naive at best. Prices in London can't keep going at this rate and I've got a feeling it's all gonna end in tears. As usual, it will be the ordinary, hard-working souls who bear the brunt of other people's mistakes.
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