Buy to let investors can purchase value for money homes costing less than £1,000 a square metre in only five towns in Britain, according to new research.
Even the most modest home in the cheapest location – Aberdare in Wales – will set buyers back £969 a square metre. Meanwhile, the most expensive homes in plush Westminster, London, come in at £9,379 a square metre. The highest square metre price rise, says the data from mortgage lender The Halifax, was an increase of 574% to £4,781 over a 20-year period between 1988 and 2018.
Where are the best ‘value for money homes’ located?
The only place in this category in the top 10 outside London, was Hove, Sussex, where the price soared by 427% over two decades to £4,188 a square metre.
Besides Aberdare, the other cheapest towns are:
- Nelson, Lancashire, with a square metre price of £974
- Merthyr Tydfil, the fourth largest town in Wales, has a square metre price of £980
- Peterlee, County Durham, weighs in with a square metre price of £985
- Stanley, County Durham, has a square metre price of £997
Average per square metre prices for homes in London are £2,788 compared to £2,342 across the rest of the UK. The Halifax calculated cost per square metre prices by dividing the average home price in a town by the average internal floor area. Russell Galley, the lender’s managing director, 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.”
Mr Galley’s comment is backed up by the Halifax report, which reveals that for the first time in eight years, Greater London house prices per square metre have stalled – rising just 0.5 per cent in the 12 months to May.
“While cheaper locations such as Scotland and Wales have started to increase more rapidly over the last 12 months, the prices per square metre in Scotland and Wales mean home buyers can get a lot of house for their money in these regions compared to Southern England,” adds Mr Galley.