Chelsea house prices now five times higher than UK average

Chelsea house prices are now five times higher than the UK average, as the gap between London and the rest of the country’s property values remains as wide as ever.

Property prices per square metre have risen by 432 per cent in Greater London against a national average increase of 251 per cent over the past two decades, according to new research from Halifax.

Although London dominates the country’s list of most expensive property locations on a per square metre basis, five areas outside southern England fetch a higher property price per square metre than the national average of £2,216 – Solihull and Leamington Spa in West Midlands, Altrincham in the North West,
Scotland’s capital, Edinburgh, and Harrogate in Yorkshire.

Nonetheless, there has been a substantial gap widening in property prices per square metre between southern England and the rest of Britain over the past 20 years.

Indeed, nine of the 10 areas that have seen the biggest increases in price per square metre over the last 20 years are in London, while all of the 10 areas recording the highest house price growth on a per square metre basis are London boroughs. Since 2011, Waltham Forest, Greenwich and Lewisham have recorded the largest growth in prices (all at 87 per cent), followed by Newham (82 per cent).

The borough of Kensington and Chelsea remains Britain’s most expensive neighbourhood, with an average price of £11,321 per m2. Despite dropping 1 per cent lower than last year, it is more than five times the national average of £2,216. Kensington and Chelsea, along with Westminster (£10,552) are the only areas in Britain with an average price above £10,000 per m2, followed by Camden at £9,012 per m2.

Half of the 10 most expensive towns outside southern England are in the West Midlands. Solihull, with an average price of £2,661 per m2, and Leamington Spa (£2,645) are the two most expensive towns. The other West Midlands towns that made the top 10 include Sutton Coldfield (£2,113), Bromsgrove (£1,970) and
Stourbridge (£1,943). Meanwhile, five places outside southern England have average prices per m2 above the national average of £2,216. In addition to Solihull and Leamington Spa, these include Altrincham in the North West (£2,634), Edinburgh (£2,355) and Harrogate (£2,342).

The research found that nowhere in Great Britain had an average price below £1,000 per m², but Airdrie in Scotland had the lowest average price at £1,019 per m², less than a tenth of the average price per square metre in Kensington and Chelsea.

Chris Gowland, Mortgages Director, Halifax, says: “House price per square metre can be a useful comparison measure as it helps to adjust for differences in the size and type of properties between locations.

“The consistent gap between southern England – led by London – and the rest of the country over the past two decades – is a trend that has embedded itself
throughout the last five years,” he adds.