Young professionals are now paying an extra £71,000 on average to buy a home in the UK’s 20 most popular postal districts, according to new research from Lloyds Bank. In one of the top 20 areas, the average house price is £735,874. This is 13% or £71,158 more than the surrounding area’s cost of £664,716.
Hove was the most desirable location for the third year in a row among young professionals looking to find a home, followed by Wandsworth and Wimbledon in London.
For homes in Hove, the average property value is £763,418, a 2% premium of £15,546 in comparison to the surrounding area. While in Wimbledon, young professionals are paying an extra 18% of £109,397 versus prices in the rest of the area.
South West London proved to be a favoured area with Fulham, Battersea, Streatham and Putney appearing on the list alongside Wimbledon and Wandsworth. But Hove appears to be popular with families due to its proximity to the sea and good sized homes. In fact, overall the East Sussex coast is a sought-after area for younger people with nearby Brighton coming in seventh in popularity.
As 52% of London’s working age population is in the 25 to 44 age bracket, it isn’t surprising to that Greater London had the majority of the top 20 areas for young professionals with 16 of the top 20 areas.
However, London is also home to the greatest premiums, with the average house price of £857,792 in Chiswick having the highest extra costs of £370,988, or 76 percent higher than the borough of Hounslow. The next highest premiums were found in Kilburn with £341,208 and Hampstead with £307,775.
Lloyds Bank mortgage products director Andrew Mason suggested that these young buyers do not seem to be dissuaded by these premiums due to the proximity to their jobs, green spaces and places to socialise.
Outside of London, young professionals have a 59% premium of £102,909 in comparison to Birmingham. Whereas in Didsbury, the premium is £93,062 or 56 percent compared to Manchester.
Didsbury represents the 20th most popular area for young professionals but other desirable places include Newcastle’s Jesmond, Broomhill and Fulwood in Sheffield, Nottingham’s West Bridgford and central Cardiff.
For students considering their future careers, location plays an important role and this study has certainly offered a lot to consider when facing such a competitive job market and student debt.