Why It Matters
Average Property Value for Space
Summary
We have calculated the average price per square foot and square meter of residential properties in all relevant postcodes (measured in £/sq.ft and £/sq.m), and further broken down these values based the property’s size (here understood to be the property’s number of bedrooms).
| Dataset | Explanation |
|---|---|
| Average value of a square foot in a property (all classes) | This is an estimation of the average price one can expect to pay for a square foot of space when purchasing a property of any size in this postcode. |
| Average value of a square meter in a property (all classes) | This is an estimation of the average price one can expect to pay for a square meter of space when purchasing a property of any size in this postcode. |
| Average value of a square foot in a 1-bedroom unit or studio | This is an estimation of the price one can expect to pay on average for a square foot of space when purchasing a 1-bedroom property in this postcode. |
| Average value of a square meter in a 1-bedroom unit or studio | This is an estimation of the price one can expect to pay on average for a square meter of space when purchasing a 1-bedroom property in this postcode. |
| Average value of a square foot in a 2-bedroom unit | This is an estimation of the price one can expect to pay on average for a square foot of space when purchasing a 2-bedroom property in this postcode. |
| Average value of a square meter in a 2-bedroom unit | This is an estimation of the price one can expect to pay on average for a square meter of space when purchasing a 2-bedroom property in this postcode. |
| Average value of a square foot in a 3-bedroom unit | This is an estimation of the price one can expect to pay on average for a square foot of space when purchasing a 3-bedroom property in this postcode. |
| Average value of a square meter in a 3-bedroom unit | This is an estimation of the price one can expect to pay on average for a square meter of space when purchasing a 3-bedroom property in this postcode. |
| Average value of a square foot in a 4-bedroom unit | This is an estimation of the price one can expect to pay on average for a square foot of space when purchasing a 4-bedroom property in this postcode. |
| Average value of a square meter in a 4-bedroom unit | This is an estimation of the price one can expect to pay on average for a square meter of space when purchasing a 4-bedroom property in this postcode. |
| Average value of a square foot in a 5+ bedroom unit | This is an estimation of the price one can expect to pay on average for a square foot of space when purchasing a property with 5 or more bedrooms in this postcode. |
| Average value of a square meter in a 5+ bedroom unit | This is an estimation of the price one can expect to pay on average for a square meter of space when purchasing a property with 5 or more bedrooms in this postcode. |
Why the metric matters from a commercial inhabitant’s perspective
Knowing the average price per square foot/metre in your area essentially gives commercial inhabitants a crude price to space ratio for residential properties, allowing for easy comparison between properties of similar size but different locations. As the metric concerns itself solely with residential value for space, it offers little to commercial inhabitants without a great deal of supplementary information. Nevertheless, knowledge of value for space norms, will inform commercial inhabitants with home-buying employees of the likely wage pressures employees will experience if they live locally. Additionally, it will usefully inform, those who work with residential real estate prices as part of their business, such as developers, estate agents and general builders on the expected values of various property sizes.
Why the metric matters from a residential inhabitant’s perspective
The average price per square foot/metre in your area metric is one of the most important variables in determining a residential property’s price. It allows an investor or resident to see the value of a particular residential property in terms of how much the market is willing to pay for each square metre or square foot of space. The average price per square foot/metre in your area metric also allows for an “apples-to-apples” comparison. So, for example, a 700 square foot, two-bedroom, property in Finchley could easily be compared directly to a two-bedroom 600 square foot in Farringdon. An investor or resident would then be able to weigh up the worth of increased amenities in terms of location-specific-attributes, such as schools and green space and property-specific-attributes such as a roof terrace or off-street parking- as these would be the main causes of appreciably different prices per square foot/metre. It subsequently becomes possible to estimate the extra value that such attributes are worth to specific. The average price per square foot/metre in your area metric can also be used to compare a property against its own historical record.
Kensington offers some of the most spacious properties in London (Photograph: Michael Christo, Wikimedia Commons)
General commentary & Trivia
A square metre of space is about the size of a red phone box, and the price for such space varies wildly based on how desirable an area is to live in. The most expensive area in London is Kensington and Chelsea, where a single square metre can cost almost £20,000. Conversely, a square metre of floorspace in Blaenau Gwent (in the southern valleys of Wales) can cost as little as £700. The average cost per square metre in the UK was £2,395 in 2016, and today 19 out of 20 of the most expensive local authority areas are in London, the least expensive of which was Barking and Dagenham with homes at an average of £3,994 per square metre.