London tops 2014 House Price Premier League
Wednesday, 03 September 2014
Whilst football fans are eagerly anticipating the start of the 2014/15 Barclays Premier League, researchers at Nationwide have taken the opportunity to see where teams would place if they were ranked by local house prices, factoring in how much they've increased since 2013.
No one will be surprised to hear that London clubs top the House Price Premier League. Although Chelsea and Queens Park Rangers boast the highest average house prices, tied at £760,144, those in Tottenham Hotspur's local area shot up by the most impressive amount.
In fact, the average house price in Haringey, home of Tottenham Hotspur’s White Hart Lane stadium, has jumped by 32% over the last year – pushing local rivals Arsenal down into lowly fourth place. An average house in Haringey costs £513,435, which means it’s still far more affordable than the £701,030 average in Arsenal’s Islington area. Buying in Tottenham would leave a lot more cash in the bank for necessities like home insurance, or unexpected expenses like boiler breakdowns.
While London's dominance of the top spots will hardly come as news to anyone, the fact that Tottenham trumped its swankier neighbours suggests that the London 'bubble' isn't simply the result of high-end house purchases by foreign investors. In fact, the Financial Times suggested this week that London prices are increasingly driven by activity in cheaper areas.
Richard Donnell of Hometrack told the FT: "It’s young people wanting to get on the housing ladder and get good value for money... But in the outer London family market, still not much is happening.”
His analysis could be extended beyond the M25 too, if Nationwide's Premier League predictions are anything to go by. After the London teams come high-growth cities, with Swansea, Southampton, Everton and Liverpool taking the seventh, eighth and joint ninth spots. Meanwhile, Newcastle, Burnley and Hull City are left behind in the relegation zone.
Nonetheless, Nationwide's Premier League price index does show just how much London is driving the UK's housing market, with annual growth across each of the six London club areas starting at 20%. In all but one of the other areas, all growth figures were 13% or less; which is at least good news for those looking to get a foot on the property ladder.