Research by Share to Buy has revealed the top locations to buy houses, with the biggest increase in property value over the last decade.
The average UK property value has increased 10% this year alone — and some locations have increased in value more than others.
The North East recorded the best results for increasing property value, with prices nearly tripling by 186% in the last 10 years. This is followed by South East (82%) and West Midlands (61%).
Share to Buy also analysed Land Registry data to speculate what these property hotspots could be worth in 10 years’ time if growth continues at the current rate.
Manchester — 112.1% property value increase
Manchester topped the list, with the average property value in the city rising from £139,783 to £296,536 over the past ten years. At this rate, the average property price in Manchester in 2031 would be around £629,000.
Coventry — 93.7% property value increase
The average property price in Coventry has increased from £150,809 in 2010 to £292,081 in 2021. At this rate of consistent growth, Share to Buy predicts the average Coventry property value in 2031 could be around £565,869.
Birmingham — 78.4% property value increase
The research shows the average property in Birmingham has increased in value from £149,928 in 2010 to £267,442 in 2021. The average property value could reach around £477,000 in ten years if growth remains steady.
Gloucester — 78.1% property value increase
Ten years ago, the average Gloucester property was worth around £211,711. Nowadays, it’s worth over £377,053. At this rate, Share to Buy projects the average property in Gloucester could be valued at over £670,000 in ten years.
Milton Keynes — 77.9% property value increase
The average property in Milton Keynes was £210,120 ten years ago; now, it’s £373,809. This suggests the average Milton Keynes home in ten years will be roughly £665,000.
Nick Lieb, head of operations at Share to Buy, explains: “First-time buyers looking to get on the property ladder may wish to do so for a combination of reasons: it’s common to not just want a comfortable home to live in, but the chance to buy in an area you love, as well as making a solid investment to ensure financial wellbeing over the long term.”
“Locations where property values steeply increase are a great option for buyers looking for not only a home but an investment; however, the initial costs in these locations are often out of reach for first-time buyers.”
While these projections are based on the current rate, many potential purchasers are already feeling priced out of the property market in popular areas. Lieb says that’s why schemes like Shared Ownership and Help to Buy exist.
“These government-backed products assist buyers in climbing the property ladder by lessening the upfront deposit costs,” he adds. “Shared Ownership allows buyers to purchase a share of a property, while Help to Buy can help first time buyers with the assistance of an equity loan.”
“As a result, eligible buyers who would otherwise struggle to buy can purchase properties in sought-after locations which offer a rich lifestyle and a solid return of their initial investment when the time to sell eventually comes.”
Britain’s Housing Value Soars 20% in Five Years – Much Of It In 2021
The total value of homes in Britain has risen 20 per cent – that’s £1.6 trillion – in the past five years according to Zoopla.
There’s been a sharp acceleration in value over the past year in particular, driven by soaring demand for homes and the pandemic-led search for space.
As a result, over a third of the past five years’ price growth has come in the past 12 months alone.
The total value of homes in Britain currently stands at £9.2 trillion.
The majority of this, some £8.2 trillion, is held within 23.5 million privately-owned homes, whilst a further £1 trillion is held within five million social homes.
Zoopla says sustained price growth in the housing market since 2016 has been underpinned by ultra-low mortgage rates.
Total home values in the South East have risen more than anywhere else in the past five years, including London. The value of homes in the South East has increased by £294 billion compared to £214 billion in the capital. However, whilst London only accounts for 13 per cent of British housing stock, it is responsible for a quarter of its total value.
There is a high concentration of value in some specific local authorities. For example, the value of homes in the City of Westminster and Kensington and Chelsea (£306 billion) – which cover an area of just 13 square miles – is higher than all the homes in the North West (£197 billion) and roughly the same as Wales (£308 billion).
Gráinne Gilmore, head of research at Zoopla, comments: “The value of Britain’s residential property has continued to climb over the last five years, speeding up over the last 12 months as house price growth has escalated.
“The price and density of homes dictate where the largest concentrations of housing value are located, however, in some local authorities, more than two-thirds of homes have risen by more than the average.”