New research has revealed the huge savings that can be made by buying a property just a few minutes down the road from some of the most sought-after areas in the country rather than living in the premium hotspot itself.
For many, buying a home is all about aspiration, so it’s natural for us to want to live in the very best area we can afford. However, in many of the UK’s major cities, the top rung of the property market is generally reserved for high-end property buyers leaving most investors priced out of the area and looking further afield for better affordability.
Since the start of the pandemic, house prices have increased by almost 10 per cent primarily due to the high demand for property that has been met with low supply. This latest research, which looked at prices across eight major cities, reveals that property investors can have all of the perks of living just a stone’s throw away from some of the most in-demand areas while saving an average of 34 per cent on the purchase price.
For example, properties in Jesmond, an upmarket neighbourhood in Newcastle boasting boutique clothing shops, cafes and cocktail bars, cost on average £262 per sq. ft. While just 2.5 miles away in nearby Byker, a less sought-after area recently dubbed “the best neighbourhood in the UK’ properties cost just £119 per square foot, that’s a 55 per cent saving.
Another example of the significant savings to be made living just a few minutes’ drive from a popular area is the difference between prices in Holbeck Urban Village compared to nearby Holbeck. Holbeck Urban Village is a highly desirable property hotspot in Leeds. The former industrial site has recently been transformed into a stunning community tech/media hub, where properties cost an average of £225 per sq. ft. However, the research has revealed that buyers can enjoy all of the perks of the Urban Village by choosing to live in nearby Holbeck just 1.5 miles away where homes are 44 per cent cheaper at £125 per sq. ft.
The Sunday Times once crowned Manchester’s Altrincham as “the best location to live in Britain.” Properties there cost £389 per square foot, but buyers can get a much better deal by opting to buy a few miles away in Wythenshawe, where property costs 40 per cent less at £234 per square foot.
The research also looked at prices in Mossley Hill, a popular neighbourhood in Liverpool with popular schools and a low crime rate. As a result, homes in the hotspot are pricey, costing £298 per square foot. While in the Toxteth area, around two miles away, which is home to the stunning green space 235-acre, Grade I listed Sefton Park, property costs just £182 per sq. ft, that’s a 39 per cent saving!
Property investors can also save big by buying in Hammersmith in London where properties are 39 per cent more affordable than celeb-filled neighbour Kensington, where property costs a whopping £1,423 per sq. ft.
However, the research found that opting to live a short distance from the most desirable property hotspots in Birmingham, Nottingham and Bristol won’t save property investors as much as in other key locations. In these cities, buyers can expect to make more modest savings of between 12 to 26 per cent by making a slight compromise on location.
Managing Director of Barrows and Forrester, which conducted the research James Forrester, commented: “By shifting your search just a few minutes down the road, you’ll find there is often a considerable saving to be made that also allows you to easily access and enjoy the same areas as those paying a fair bit more than you are for the pleasure.
In many cases, this ripple effect often leads to greater demand and an uplift in property values in these surrounding areas and so not only will it save you money climbing the ladder now, but you may well find your property has climbed in value by a greater margin when you come to sell.”