Buying a home is the largest financial investment most of us will ever make, so how much are you getting for your money? New data reveals the average price Brits are paying per square metre of property and which areas are most costly.
London remains the region with the most expensive residential property by square metre, according to research from high street bank Halifax, but prices haven’t moved in the past year. By contrast, average prices in some areas have increased by more than 20%.
Which? looks at the data and explains how you can work out the value of your home.
Highest prices per square metre
Perhaps unsurprisingly, Greater London remains the area where you pay most for housing, at £5,106 per square metre, the Halifax survey found. Yet in the past year, this has hardly increased at all.
By contrast, house buyers in East Anglia have seen the price per square metre go up by 7%, to hit £2,256.
Properties in Wales are the cheapest on a square metre basis, at £1,456. That said, this represents a 5% increase on the year before.
You can see the full information for UK regions and countries (excluding Northern Ireland) in the map below.
Which areas are growing fastest?
Looking at a local level, some towns have seen rapid growth in the past year.
The average price per square metre in Burnley, in the North West, has jumped by 24% in the past year, up to £1,304, Halifax found. The average home in the region is around 110 square metres.
Market Harborough, in the East Midlands, experienced a 20% increase with price per square metre at £2,089. Homes in Market Harborough tend to be a roomy 133 square metres in size, with an average property price of £335,025.
Three towns in the South West made it in to the top 10 for fastest growth – Melksham, Bideford and Poole.
And while Wales generally had growth of 5%, the town of Neath saw average prices per square metre jump by 16%.
You can see the top 10 below:
|Town||Region||Price per sqm.||Annual increase||Average property size.|
|Market Harborough||East Midlands||£2,513||20%||133sqm|
|Newton Le Willows||North West||£1,546||18%||107sqm|
- Looking to move? You can use our area comparison tool to find the best areas to live
How much is your house worth?
Working out how much your house is worth can be tricky. Ultimately, it will come down to what a buyer is willing to pay.
But you can estimate the value of your home by looking at the following factors:
- What have similar properties sold for? It’s important to compare to similar properties, meaning those with the same number of bedrooms, features and in similar condition. The more local your analysis the better – ideally, look up sales prices for houses in your street.
- What makes your home stand out? Think about both positive factors, such as a conservatory or central heating, and potential negatives, such as being near a busy main road.
- What’s happening in your local area? Are there any particular developments that are likely to boost or hinder your area’s value? Is the local job market strong? Are families attracted by good schools?
- How much demand is there? Look at listings in your local market to see how long properties are being offered for before they’re sold.
You can also seek a quote from a local estate agent, although it’s worth getting a few different opinions to make sure you have a realistic idea of the current market.
Keep in mind that banks will carry out their own valuation when you apply for a mortgage to make sure the property is worth what you’ve offered to pay for it.
If the valuation is significantly less than what you’ve offered, and the bank is not comfortable taking on the risk of lending, you may not be approved for the loan.
From the seller’s perspective, expecting too much may limit the buyers who are able to secure a loan for the full amount.
For this reason, whether you’re buying or selling, it’s important to have a realistic idea of how much your home is likely to be worth.
To find out more, you can read our guide to how much a property is worth.