15:42 PM, 3rd October 2011, About 10 years ago
Buy to let landlords with homes in cities have seen their properties rise in value by around 65% in the past 10 years.
The average city home has surged in price by £68,236 or £131 a week since 2001, according to the Halifax Cities Review.
City living tends to cost more than having a home in the countryside, which is reflected in higher comparable house prices.
Winchester, Hampshire, is the most expensive city in England and Wales, with homes changing hands at 77% more than those throughout the county.
Unsurprisingly, Westminster is not far behind, with a 74% premium on home prices compared to the rest of London.
Seven of the top 10 cities with the largest house price premiums are in the south – the city that leads the way for the rest of the country is Lichfield, Staffordshire, where homes cost 58% more than those in the rest of the county.
Property investors looking for value-for-money homes could look at investing in Portsmouth, Hampshire, where the average price is £141,871 – 31% below the average for Hampshire and
£20,476 below the Land Registry average home price for England and Wales.
Suren Thiru, housing economist at Halifax, said: “With the housing demand and supply imbalance that characterises the UK property market often more acute within our major urban conurbations, homes in cities across the country are typically trading at a marked premium over neighbouring areas.”
“City house prices are generally supported by demand from those looking to gain from the economic and lifestyle benefits often associated with residing in major urban areas, as well as by the pressures on the housing supply that often typify such locations.”
The Halifax study looked at house prices in each of the 66 cities, but did not include the City of London, St David’s and Bangor in Wales nor Wells, Somerset, as the data was too low too include.
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