Truro is the top performing city over the past decade: UK Property Shop News

New research from Halifax Estate Agents shows that Truro has delivered the biggest rise in residential property prices over the past decade with an increase of 262% from £518 per square metre (psm) in 1996 Q1 to £1,876 psm in 2006 Q1.

The first annual House Price Per Square Metre Survey examines the movement in house prices on an average price per square metre basis in 62 UK cities. Average price per square metre is a useful measure for house price comparison, helping to adjust for differences in property size and type across cities. The average price per square metre is calculated by dividing the average house price by the average square metreage per property (excluding external space).

Smaller cities have generally been the best performers over the past ten years; eight of the ten cities recording the largest increase in average price psm have an average population of less than 250,000.

The three most expensive cities in the UK are London (£3,582 psm), Oxford (£2,741 psm) and St Albans (£2,716 psm). Prices are above the £2,000 psm threshold in 12 cities, including Brighton (£2,313), Bath (£2,271) and Winchester (£2,572). Armagh is the least expensive city in the UK; there the average price is £1,009 psm just over one-third of the price in London.

The gap between London and other UK cities has widened over the last 10 years. In 1996, the price psm in London was 0.3% higher than the second most expensive city, St Albans. London was also 172% higher than the least expensive city, Armagh. In 2006 house prices in London were 31% higher than the second most expensive city, Oxford, and 255% higher than the least expensive, Armagh.

KEY FINDINGS

Price movements over the last 10 years

* Prices have at least tripled in 15 (one in four) of the cities surveyed and at least doubled in all 62 cities since 1996. The majority of the cities recording the biggest increases are in southern England, but Salford and Newcastle also feature in the top 10. Brighton (260%), Salford (255%), London (252%) and Bath (236%) follow Truro in the top five.

* Scottish cities dominate the list of cities experiencing the smallest increases in house prices on a psm basis during the past decade. Three of the bottom five cities are north of the border: Aberdeen (104%), Stirling (122%) and Glasgow (126%). Southampton (132%) and Preston (133%) are the other cities in the bottom five.

Prices per square metre

* In 2006 twelve cities have an average psm above £2,000. In 1996 only two cities had an average price psm above £1,000 London and St Albans. Twenty-seven cities currently have an average psm below £1,500.

* Londonderry (£1,133 psm), Lisburn (£1,215 psm), Carlisle (£1,217 psm) and Newry (£1,230) are the next least expensive cities after Armagh.

* The average house in the UK has an area of 103.8 square metres. To buy a house of this size in London would cost £371,893, while it would cost £104,738 in Armagh, the least expensive city. In 13 cities it would cost more than £200,000 to buy the average sized house. All of these cities are located in the south of England, with the exception of Edinburgh.

Most significant changes in price rankings since 1996

* Truro has climbed the most places over the past ten years, from a ranking of 45th in 1996 to 17th in 2006, followed by Norwich (38th to 18th), Newcastle (47th to 28th), Salford (60th to 41st) and Lancaster (51st to 35th).

* Of the ten cities with the highest psm, Brighton has seen the sharpest rise in its ranking, up twelve places from 18th to 6th. Bath is the next best performer, climbing seven places from 14th to 7th.

* Three of the major industrial cities in northern England Newcastle, Manchester and Liverpool have all moved up the table and out of the bottom 20. Newcastle has climbed the most places of the three, up from 47th in 1996 to 28th in 2006. Liverpool has risen from 48th to 38th and Manchester from 43rd to 31st.

* Stirling has fallen most sharply in the rankings since 1996, dropping from 16th to 46th. Glasgow (23rd to 50th) and Dundee (34th to 56th) were the other two cities to experience the most significant downward movement in the rankings.

Commenting, Martin Ellis, Chief Economist, Halifax Estate Agents, said: "House price per square metre is a useful measure for house price comparison because it helps to adjust for differences in the size and type of properties between locations. This is a helpful descriptor to be used alongside other more established house price comparators. Smaller cities, with an average population of less than 250,000, like Truro, Brighton and Bath have generally recorded the largest increases in average house prices per square metre over the past ten years. This highlights that many households want the conveniences of city living, such as good shopping, transport links and easy commuting whilst living in attractive surroundings."