Young professionals favour south-west London - Lloyds Banking Group

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May 18, 2013 - within easy access of the City and the West End, making it very ... Hove and central Brighton are the onl
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In this review Lloyds TSB looks at the major housing “hotspots” around England and Wales that attract young professionals. The definition of young professionals is based on analysis carried out by CACI in their ACORN (A Classification Of Residential Neighbourhoods) database. ACORN is a geodemographic segmentation of the UK’s population. It segments small neighbourhoods, postcodes or consumer households into 11 demographic groups and 46 Types. This review is based on 'young urbanite professionals'. Young is defined as those in the age group 25 to 44. Land Registry property transactions and price data have been used.

Young professionals favour south-west London Wandsworth is Britain’s most popular location for young aspiring urbanites London’s young professionals pay on average a 32 per cent premium to live in the most desirable locations The latest research from Lloyds TSB reveals that Wandsworth in south-west London is the leading property hotspot favoured by aspiring young professionals. This area of London is within easy access of the City and the West End, making it very convenient for young working adults. Wandsworth has a mix of Victorian and Edwardian properties as well as new riverside flats and conversions that many young professionals find attractive. Fulham, Battersea and Wimbledon – which, like Wandsworth, are in the SW postal area – are the next most popular areas with this segment of the population. 18 of the 20 property hotspots favoured by young professionals are in the capital, including Paddington, Kilburn and Hampstead. Hove and central Brighton are the only areas outside London in the top 20 [See Table 1]. Didsbury most popular among young professionals outside London and the south east Outside the capital and the south east, the area most favoured by young professionals in England and Wales is Didsbury in south Manchester. Other regional hotspots for young professionals include Clifton in Bristol, central Cambridge, West Bridgford in Nottingham, and Broomhill and Fulwood in Sheffield [See Table 2]. Premium prices for areas favoured by young professionals Properties in areas popular with young professionals tend to come with a large price tag. Those in the 20 most popular areas in London pay around 32 per cent (£619,000) above the average price for their local authority3. In the SW6 area of Fulham, for example, the average price of £847,620 is 23% above that for the wider Fulham area. In the SW11 area of Battersea, residents would need to pay a 19% premium on an average priced house compared with houses in the surrounding area. Similarly, areas outside the capital popular with young professionals typically have relatively higher property prices. In Didsbury, young professionals pay on average £236,844 compared

with £142,041 in the rest of Manchester: a premium of 67 per cent. In West Bridgford, the average property value (£229,456) is 53 per cent above that for Nottingham as a whole (£150,175). The area of Harbourne in Birmingham, where the average house price is £251,015, comes at the greatest premium (72%) above the average for the city of £146,201. The most popular area in Wales – Cardiff Central – has property prices at a 52 per cent premium compared with the city average [See Table 2]. Flats and terraced homes typically most popular property types Flats are the most popular property type in many of the areas most favoured by young professionals. For example, flats account for four fifths (80%) of all properties in Hove (BN3 postal area) and Clifton in Bristol. Terraced houses account for the majority of property sales in central Cardiff (81%), as well as in Broomhill and Fulwood (58%) in Sheffield. Detached properties account for a much smaller proportion of homes purchased in the most popular areas in England and Wales with young professionals. West Bridgford in Nottingham (13%) had the highest proportion of detached properties sales in an area popular with young professionals. Nitesh Patel, Housing Economist at Lloyds TSB, said: "Aspiring young professionals are typically well-qualified and in well-paid jobs. They tend to live in areas that are not far from the city centre, but are also places where they can enjoy open green space and a café style environment. Buyers typically pay a significant premium to live in areas popular with young professionals." Table 1: 20 Areas with the most property sales to young professionals Postal area

Post Town

SW18

Wandsworth

Greater London

519,785

SW6

Fulham

Greater London

847,620

SW11

Battersea

Greater London

633,996

SW19

Wimbledon

Greater London

508,316

BN3

Hove

South East

282,121

W2

Paddington

Greater London

1,016,285

NW6

Kilburn

Greater London

630,653

NW3

Hampstead

Greater London

1,033,362

SW17

Tooting

Greater London

429,599

SW16

Streatham

Greater London

312,008

BN1

Brighton

South East

275,215

SW15

Putney

Greater London

580,238

SW12

Balham

Greater London

607,800

W4

Chiswick

Greater London

637,163

SW4

Clapham

Greater London

600,919

W14

West Kensington

Greater London

680,867

SW2

Brixton

Greater London

369,333

W5

Ealing

Greater London

487,222

Region

Average House Price* - £

N4

Finsbury Park

N1 Islington Source: Land Registry *12 months to February 2013

Greater London

390,727

Greater London

751,881

Table 2 – Top hotspots by region

Postal area

Post Town

SW18

Wandsworth

City*

Region Greater London

London

Average House Price** £

Average House Price* in main city/local authority

Premium Young Professionals would pay

519,785

534,259

-3%

282,121

310,055

-9%

BN3

Hove

Brighton

South East

M20

Didsbury

Manchester

North West

236,844

142,041

67%

BS8

Clifton

Bristol

South West

312,689

218,000

43%

CB1

Cambridge

Cambridge

East Anglia

336,379

332,773

1%

Nottingham

East Midlands

229,456

150,175

53%

Yorkshire and the Humber North

208,910

153,609

36%

241,685

168,223

44%

West Midlands

251,015

146,201

72%

Wales CF11 Cardiff Central Cardiff Source: Land Registry * Average price for the local area district; **12 months to February 2013

279,700

184,184

52%

NG2 S10

West Bridgford Broomhill and Fulwood

NE2

Jesmond

Sheffield Newcastle Upon Tyne

B17

Harbourne

Birmingham

NOTES TO EDITORS: 1

All prices are based on transactions in the 12 months to February 2013 recorded on the Land Registry database for transactions in England and Wales. 2 Average price is based on property transactions taking place within specific postal sectors (i.e. SW18 1, SW18 2) and aggregated up to derive an average price for the postal district (i.e. SW18). These are crude average prices. 3 Weight average price of local authorities where the 20 postal areas are in located in. Methodology: There is an ACORN consumer classification against the postcode of each housing transaction in the Land Registry database; for this survey we have concentrated solely on transactions involving the category group “Young Urbanites”. These are affluent young professionals and well off urban professionals in the age band 25 to 44. Young Urbanites make up 5.3% of the UK population, according to CACI estimates. For further background on the ACORN demographic analysis please refer to http://www.caci.co.uk/acorn-classification.aspx The most popular area is the Young Urbanite neighbourhood with the largest number of property transactions. The most popular areas for Young Urbanites are determined by calculating the number of housing transactions that took place at postcode sector level (e.g.SW18 1AA) in the 12 months to February 2013. For ease of analysis, all transactions are then aggregated up to postal district level (e.g. SW6). The name of the relevant post town or local area name is attributed to the relevant postal district for ease or reference in this release although the relevant postcode will be only part of that broader area or town.

The data in this report are compiled from over 1.78 million UK post codes supplied by the Royal Mail in conjunction with the Land Registry database of housing transactions and prices. House prices shown are arithmetic average prices relating to house transactions between March 2012 and February 2013. The house price data in this report is sourced from the HM Land Registry. House price data is from the Land Registry and refers to crude average prices. These prices are not standardised and therefore can be affected by changes in the sample from period to period. The data in the research are arithmetic average prices relating to house

transactions between March 2012 and February 2013. © Crown copyright material is reproduced with the permission of Land Registry under delegated authority from the Controller of HMSO. Viewers of this Information are granted permission to access this Crown copyright material and to download it onto electronic, magnetic, optical or similar storage media provided that such activities are for private research, study or in-house use only. Any other use of the material requires the formal written permission of Land Registry which can be requested from us, and is subject to an additional licence and associated charge.

Press Office Contacts: Julia Chapman, Media Relations Manager, Lloyds TSB: [email protected] / 020 7356 1511 Claire Miller, Senior Media Relations Manager, Lloyds TSB [email protected] / 020 8936 5602 Lloyds TSB is part of Lloyds Banking Group Tel: 0207 356 2374 Website :http://www.lloydsbankinggroup.com/media.asp "This report is prepared from information that we believe is collated with care, however, it is only intended to highlight issues and it is not intended to be comprehensive. We reserve the right to vary our methodology and to edit or discontinue/withdraw this, or any other report. Any use of this report for an individual's own or third party commercial purposes is done entirely at the risk of the person making such use and solely the responsibility of the person or persons making such reliance. © Lloyds TSB all rights reserved 2013"