New research has revealed that young professionals can expect to pay a £71,000 premium to live in the UK's most popular areas. Lloyd's has compiled a list of the top 20 postcodes across the country thought to have the highest concentration of house sales to young professional buyers.
While Hove in East Sussex tops the list, 16 of the areas listed are located in London postcodes. The report goes on to reveal that the average price of a home in the most popular areas is 13% higher than average house prices in the surrounding areas.
Wandsworth was revealed to be the second most desirable area, with buyers paying a premium of just over £15k, followed by Wimbledon, Fulham and Battersea, all ranking in the top five. One stand-out location however is Chiswick, which although ranking at number 19 was found to attract buyers willing to pay 76% more to live in W4 compared to the rest of the borough.
Matthew Genders, sales manager of Chestertons in Chiswick comments "In my experience, young professionals are often attracted to areas that seemingly have it all. Chiswick has, for some time now been seen as a key desirable hotspot, not just because it provides good access to the City and Heathrow, but because of its successfully growing business hub at Chiswick Business Park. The business park has attracted some globally recognised companies, and with them, a significant number of employees looking to buy in the area".
Matthew continues "Being close to a place of work is not the only item on the wish list of a young professional buyer, being close to green spaces, local amenities and social spots is also a strong pull and a quality that all the areas in the top 20 share. If the right property comes to the market and ticks all of the boxes, buyers are rarely put off by the price, in fact they will often offer over the asking price to secure a property".
Although the list of hotspots is dominated by areas in London, Brighton, Reading and Didsbury also rank in the top 20.
*Lloyds' research was based on profiling of "young, urbanite professionals" aged between 25 and 44 by CACI and Land Registry housing market figures. April 2017