Suburbs see record 11% rise in home prices during pandemic: Suburbs outnumber the cities they surround as buyers migrate in pursuit of more space
- Analysis of mortgages from March 2020 to June 2021 showed change of pace
- Prices in major UK cities (excluding London) rose by an average of 8.9%
- But suburbs saw a bigger 11% increase as buyers wanted bigger homes
- In Plymouth, suburban prices were more than 10% higher than the city
House prices in the UK’s suburbs have risen at a record pace, according to new research, with city dwellers helping the spike as they look for more space.
An analysis of mortgage transactions included in the Halifax House Price Index between March 2020 and June 2021 found that house prices in major British cities (excluding London) rose by an average of 8.9 percent.
However, in the areas around those cities, average house price growth was much higher at 10.8 percent, turning traditional trends on their head.
Home prices in the UK’s suburbs have risen at a record pace, according to new research, with city dwellers helping the spike as they look for more space
Diving into details, researchers found that the image varied considerably in individual cities across the country.
In Plymouth, on England’s southwest coast, the city itself saw house price growth of 5.8 percent between March 2020 and June 2021, while in surrounding areas the average was 16.1 percent.
This was driven by South Hams – home to Salcombe, Britain’s most expensive seaside resort – which has seen exceptional house price increases at 26.3 per cent during the pandemic.
Meanwhile, in Leicester, city house prices rose 6.5 percent over the same period, compared to an average increase of 12.1 percent in the surrounding area, while Rutland and Melton rose 22.5 percent.
Further north, however, it was a different story. In Newcastle, property price increases in the city itself (+6.5 percent) remained higher than those in the surrounding areas (+4 percent).
North Tyneside was one of the few areas around major UK cities where average house prices fell (-5.0 percent) during the pandemic.
South Hams – home to Salcombe, Britain’s most expensive seaside resort (pictured) – has seen exceptional house price increases of 26.3 per cent during the pandemic
Commenting on the findings, Andrew Asaam, director of mortgages at Halifax, said: “The pandemic has had a huge impact on the housing market across the country.
‘This is prompted by buyers’ demand for more space, the desire to move from the center to more suburban locations and the trend to work from home more now and in the future.
‘It is clear from conversations with our mortgage customers that many have valued the space more than the location, because they have spent more time at home in the past year and a half.
“Because consumers are looking for value in the market, it inevitably leads people to look beyond the big city centers, where you get more real estate for your money.”
Analysts said another contributor to the trend was the stamp duty holiday as people wanted to buy larger family homes with a tax threshold raised to £500,000.
Overall, the Office for National Statistics recently revealed that the average house price in the UK had increased by 13.2 per cent between June 2020 and June 2021, from £234,668 to £265,668.