The price per square metre for London properties stalls and is the lowest in Great Britain stalling for the first time in eight years.
Research from the Halifax shows average house prices per square metre in London is virtually unchanged at £5,131 in 2018 compared to £5,106 in the previous year.
East Anglia had the greatest increase of 7% over the last twelve months to £2,256 compared to the average for Great Britain with prices higher by 3% to £2,342.
London has the lowest size of homes averaging 93 square metres although the house price is the highest at £477,183 and out of range for most first time buyers and home movers.
The biggest one year rise was for Burnley in the North West where the average prices per square metre increased by 24% and Market Harborough rising by 20%.
Most expensive towns in the country
The most expensive towns in Great Britain are all in London ranging from Lambeth with house prices per square metre of £6,436 to Westminster at £9,379.
The following table from Halifax shows the most expensive towns in square metres in the country for 2018.
| Borough | Price Sq M | Size Metres |
|---|---|---|
| Westminster | £9,379 | 67 |
| Camden | £8,653 | 78 |
| Hammersmith & Fulham | £7,868 | 80 |
| Islington | £7,692 | 78 |
| Hackney | £7,119 | 75 |
| Wandsworth | £7,033 | 89 |
| Tower Hamlets | £6,723 | 72 |
| Richmond upon Thames | £6,521 | 100 |
| Southwark | £6,461 | 77 |
| Lambeth | £6,436 | 81 |
A high premium is paid in the capital and homeowners also have to accept smaller properties with only Richmond upon Thames averaging 100 square metres.
With higher house prices in the capital buy-to-let landlords will look to outer London for affordable properties to help improve rental yields.
In Wales with average home sizes of 121 square metres and price per square metre of only 1,456 and home buyers can get a lot of house for their money in other regions compared to Southern England.
House prices per square metre have risen 79% in Waltham Forest over the past ten years so remortgage buyers have the opportunity to release capital which they can use to improve their home.
Over twenty years Newham house prices per square metre are up the most rising by 574% from only £709 in 1998 to £4,781 in 2018.
Greater London double national average
The cost per square metre in Greater London of £5,131 is double the national average at £2,342 with the closest region being the South East with £3,147.
For older homeowners in London the equity release buyer can access wealth with a lifetime mortgage using this to add another room, increasing their property value by £5,131 for every additional square metre.
Russell Galley Managing Director of Halifax said, 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.
Only 11 of London’s 31 boroughs increased in terms of price per square metre in the last year, ranging from Kingston upon Thames and Newham up 4%.
There were 15 London boroughs that fell in price per square metre between 1% and 3% with Camden down the largest at 5% whilst five boroughs did not change in price at all.
What are your next steps?
Talk to our London City Mortgage advisers if you are an older homeowner releasing equity from your property, we can recommend the lifetime mortgage to repay an interest only mortgage or help your children start or expand a business.
Start with a free mortgage quote or call us and we can take your details. Learn more by using the equity release calculator, property value tracker chart and mortgage costs calculator.
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