Trying to understand the complexities of the UK property market can bring about a headache to even the most educated of professionals. The property market in this country is characterized by a complex myriad of factors. One of these most crucial factors is the measure of price per square foot (£/sq.ft) This allows us to have a standardized level of measure and enables us to compare across different regions.
NATIONAL TRENDS:
Across the UK, property prices have been seeing vast fluctuations over the last three decades. Rather than comparing nominal headline price, the £/sq.ft measure is a valuable alternate indicator to measure these changes. On average in the UK, Q2 of 2024 saw properties have a value of £343/sq.ft. This is up from Q1 of 2023 where the avg. price was at £328/sq.ft. A rise of 4.61%.
As expected, the area with the highest £/sq.ft was the W1 area of London (Mayfair, Marylebone, Fitzrovia and Soho), which sat in the lofty heights of £1,187/sq.ft. Conversely, the rural north saw the lowest figure. Shildon in country Durham (DL4) was £77/sq.ft, a world away from that of W1.
The variable dynamics of the UK market are reflected in these figures. Economic conditions, governmental policies, demographic shifts, and supply and demand levels have all contributed to these varying figures.
THE SOUTH-WEST:
Moving focus closer to home for us here in the southwest of the country. On average the South West homes sold in Q2 of 2024 saw a £/sq.ft of £357/sq.ft. This is up 1.13% when compared to Q1 of 2023 (£353/sq.ft).
So, increasing at a more moderate pace compared to the rest of the country. Here in the SW we have seen significant investment in infrastructure and development projects. This has been bolstering its property market prospects. This side of the country also benefits from enhanced appeal due to strong transportation links to major cities, via major motorways, rail connections and bus routes.
BATH:
Now we are really close to home. The average £/sq.ft in homes sold in the BA1/2 area in the second quarter of 2024 was £480/sq.ft.
This is up from £472/sq.ft in Q1 of 2023. A slight rise of 1.69%.
The presence of reputable schools, a vibrant community, a balance of urban amenities and a suburban lifestyle along with the beauty this city holds, are playing a significant role in this figure and enhance its appeal to homeowners and landlords alike.
THE IMPORTANCE OF THE £/sq.ft FIGURE:
The £/sq.ft figure is not just a statistic; it is a crucial indicator of the property market’s health and trends. In a previous analysis, it was highlighted that this metric offers a more immediate reflection of the market compared to traditional indices such as the Land Registry or Nationwide House Price Index. These traditional indices lag six to nine months behind due to the time it takes to complete sales and register transactions.
This lag time from other measures allows us to see real-time tracking and gain insight several months ahead of other reports. Therefore, by following the trends of this figure in particular, we can judge the initial trends of the property market and gives an advantage when looking into the property market here in Bath.
If you would like more information about the Bath property market and where it sits both regionally and nationally, then please do follow us on social media, where we post lots of information which will help and guide you on your property journey in the city, along with all our listings and housing updates.
