House prices in UK cities have increased by 65% during the last decade, according to the latest research.
The average house price in the major UK cities has increased by £68,236 since 2001, the Halifax Cities Review report found. That is the equivalent of £131 per week over the course of a whole decade.
Living in a city is, on the whole, more expensive than living in the country and the majority of UK cities have higher average house prices than their rural equivalents.
Seven of the ten cities with the highest premiums are in the South, with Winchester taking top spot. The city has the largest premium with houses trading at a staggering 77% higher than the average house price in Hampshire.
Westminster is also an expensive area as it features houses prices 74% above the Greater London average.
Outside of the south, Lichfield in Staffordshire has the highest premium at 58%.
Those looking to buy a property in the South may want to consider Portsmouth as the average house price is £141,871, 31% lower than the Hampshire average.
There are 66 ëofficialí cities in the UK. However, the City of London, Wells, Bangor, St Davidís and others have not been included for analysis.
Suren Thiru, Housing Economist at Halifax, commented on the findings;
“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.î
ìCity 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.”
Over the last ten years a typical city home is 5.2 times the average gross annual earnings in 2001. This is compared to 2001 when it was 4.8. Despite this figure, there has been an improvement since 2007 when the average city home was 7.4 times the gross average wage.
Compared mortgages with Money Expert.