Where are young professionals choosing to live ?
South-west London’s Wimbledon district has been revealed as the most popular location in the UK for young professional homeowners.
The Lloyds Bank study looked at areas with the highest concentration of homes purchased by ‘career-oriented’ workers aged between 25 and 44, and found that many were gravitating towards certain areas of the region.
These trends have resulted in rising house prices in the areas concerned, often to over 50% higher than in other areas of the city. Wimbledon’s average house price of £535,000 is 13% greater than elsewhere in the capital.
Unsurprisingly, many more of the most popular locations are in London, including Fulham, Wandsworth, Battersea and Streatham. All of these top five are found in South-west London postcodes, and all of the top 10 localities are in the west half of the city. Of these, only one has an average house price under £500,000.
There are only two places in the top 20 from outside London, in the form of Hove and Brighton on the south coast. Curiously, Hove bucked the trend of higher premiums seen elsewhere, with houses available for 11% less than other nearby postcodes.
Southern areas tend to have higher prices, with Clifton near Bristol seeing houses sold for a 50% premium at around £335,000. However, Cambridge recorded no premium at all despite being the most popular South-east destination.
Heading into the Midlands and the North, there is a clear distinction between the areas popular with young professionals and the rest of the city.
For example, Harborne in the West Midlands has average price of almost £250,000, a premium of 63%. In the East Midlands, West Bridgford properties (£228,000) are 48% higher than the rest of the region.
In the North-west, Manchester’s Didsbury has an average price of £222,000, 55% more than surrounding areas. Living in Ecclesall and Hunter’s Bar (both Sheffield) represents the highest premium in the Yorkshire and Humber region at 39%, with houses costing an average of £215,000.
Jesmond, situated on the outskirts of Newcastle, offers an average house price of £236,000, which is 37% more than the rest of the city.
Wales fails to follow the trend, with young professionals’ preference for the centre of Cardiff not preventing it from costing 7% less to live in than other areas near the Welsh capital.
Why young professionals shouldn’t worry about stamp duty
All the average-price houses in these areas will be affected by stamp duty land tax (SDLT), which comes into play for any property over £125,000.
For the North, Midlands and Wales, average properties stay below £250,000, meaning a 1% SDLT rate. Venturing above this triggers a 3% rate, and it is only really when we get into London that average prices top half a million and are hit by 4% SDLT.
Fiducia can help with many forms of legal tax relief that will result in you saving money on your SDLT. This can be invaluable for new homeowners as they start out on the property ladder, and is certainly something worth exploring.
Call us on 01625 599 200 to see how we could help you.