These cities beat their commuter belts
These cities beat their commuter belts for property purchasing power
Research by estate and lettings agent, Barrows and Forrester, has revealed that when it comes to the house hunting quest for more space, homebuyers aren’t always better off buying outside of a major city when it comes to the bricks and mortar bang for buck on offer.
Barrows and Forrester analysed the current average size and cost of purchasing a property within 10 major cities across England and Wales. Based on the average price of a home in each city, they then looked at the purchasing power per sq ft across the surrounding areas, to see where homebuyers can secure a larger home for the same price, as well as where they’re better off staying put.
The research shows that in four major cities, a move from the inside out can be beneficial for homebuyers in search of a larger home.
In London, for example, the current average cost of a home comes in at £736 per square foot, with the average property size sitting at 751 sq ft.
When looking to the areas beyond the city’s boundary, this cost drops to an average of £642 per square foot with the average home coming in at 776 sq ft, offering the potential for a larger home at a more affordable price tag.
However, with the average London home currently selling for £552,755, home sellers across the capital would have the purchasing power to secure a property up to 861 square feet when moving to the capital’s surrounding areas, increasing the size of their home by 110 sq ft when compared to living in the city.
In Cardiff, selling up within the city and moving to the surrounding areas would see homebuyers boost their property size by 139 sq ft when purchasing a property at the same price as Cardiff.
Based on the current value per sq ft, those selling in Newcastle and Leeds and looking to the surrounding areas could increase their property size by 89 sq ft and 23 sq ft respectively based on the same cost of buying within each city itself.
In Bristol, this boost to homebuyer property potential sits at 8 sq ft when looking to the surrounding areas.
But a move from the city to its surrounding areas doesn’t always guarantee a larger home at a more affordable price. In Nottingham, the average home costs £273 per sq ft at an average size of 702 sq ft. In the surrounding areas, the average home is larger at 768 sq ft, but costs an average of £338 per sq ft.
As a result, those selling up in the city at an average sold price of £191,576, would only have the purchasing potential to buy a home of 567 sq ft in the surrounding area, 136 sq ft smaller than their property in Nottingham.
This is also the case across Liverpool (-104 sq ft), Sheffield (-94 sq ft), Birmingham (-92 sq ft) and Manchester (-7 sq ft).
Managing Director of Barrows and Forrester, James Forrester, commented:
“As a general rule of thumb, moving from a city centre to the surrounding areas will allow you to purchase a larger home at a more affordable price. When you also consider the heightened purchasing power provided by the sale of a city centre property, homebuyers are in a great position to secure a far larger home for the same value.
However, this isn’t always the case and when you break it down to a cost per square foot basis, you will find that some major cities are actually more affordable.
Of course, the limitations of buying within a city are often a lack of suitable stock for an expanding household, with the focus often on building up and delivering smaller units to the market to suit a different demographic of homebuyer.
However, we’ve seen with the regeneration of the Birmingham area, in particular, how a range of housing to suit all needs can not only improve the diversity of the local market, but it can also ensure that it remains affordable. As a result, those looking to buy in Birmingham are far better of doing so and enjoying the benefits of city living, compared to looking further afield, paying more and enduring a lengthy commute.”
