Call for your free quote 0800 955 0058

Suburb prices rise faster than cities as buyers search for space

Demand for more space is driving house prices higher in the suburbs as the pandemic changes the lifestyles of city homeowners.

Homeowners were forced to work from home during the pandemic driving demand for larger properties in the suburbs with house prices rising 10.8% compared to cities higher by 8.9%, says Halifax.

More indoor and outdoor space is a high priority for home movers and data from March 2020 during the first lockdown to June 2021 when the government’s stamp duty holiday started to end, confirms a switch in buying behaviour from the city to the suburbs.

As fewer days are spent in the office, homeowners have changed their work-life priorities and taken advantage of the higher stamp duty holiday threshold of £500,000 to buy a family home.

House prices gains in suburbs

The suburbs have seen double digit gains in house prices over the last year with the biggest rise in the surrounding areas of Plymouth on England's southwest coast where city growth was only 5.8%.

In contrast growth in the suburbs around Plymouth averaged 16.1% rise and the area of South Hams rising 26.3% driven by demand in Salcombe, the most expensive seaside town in Britain.

This table from Halifax shows the highest growth in house prices for the suburbs surrounding Britain’s cities from March 2020 to June 2021.
UK city City growth Suburb growth
Plymouth 5.8% 16.1%
Leeds 11.0% 13.8%
Manchester 11.1% 13.4%
Norwich 8.4% 13.0%
Sheffield 14.1% 12.8%
Bristol 9.7% 12.7%
Cardiff 11.4% 12.7%
Edinburgh 8.5% 12.6%
Leicester 6.5% 12.1%
Nottingham 7.4% 12.1%
City prices in Leeds are up strongly at 11.0% year-on-year with prices in the suburbs even higher at 13.8% and the area of Calderdale with exceptional growth during the pandemic rising 26.7%.

Wales has experienced strong house price growth with Cardiff up 11.4%, the surrounding areas higher by 12.7% and the area of Rhondda Cynon Taf up the most at 27.3% for the year.

The rising house prices in these areas can benefit older homeowners as the equity release buyer can access cash using a lifetime mortgage and use this for anything, such as home and garden improvements.

For first time buyers the higher prices means they would need a larger mortgage or find a bigger deposit to buy in the suburbs although the starting prices are typically lower than for the city.

See how much your monthly mortgage payments would be when buying a property in the suburbs at this link:
Mortgage cost calculator with instant results and figures for your home in the suburbs.

Some cities outperforming the suburbs

There are some cities that have outperformed the surrounding areas such as Liverpool with house prices up 12.5% over the year averaging £163,049 compared to the suburbs rising only 9.5%.

The Wirral was the best performing area near to Liverpool rising 16.6% and the worst was Knowsley up by 2.2% year-on-year.

If your property price has increased, the remortgage buyer with 40% equity can benefit from low interest rates under 1% and release capital to add more space such as an extension or loft conversion.

Newcastle experienced property prices rising 6.5% and outperformed the surrounding area averaging 4.0% higher with the area of Gateshead rising the most at 14.0% and North Tyneside was down -5.0%.

With less incentive to live in a city close to work, many people are looking further afield to find value given they will work from home more and still need more indoor and outdoor space.

What are your next steps?

Speak to our LCM mortgage advisers if you move to a larger property with more space and want the best mortgage deal. Learn more by using the property value tracker chart and equity release calculator.

Start your free quote when moving home and we can look for the best mortgage and lowest interest rates at this link:
Free mortgage quote with competitive mortgage rates for your new home.

If you are releasing equity from your home to maintain your lifestyle or buy a new car, we can recommend lifetime mortgages so begin your equity release quote for the leading provider offers.


Mortgage Best Buys

These are examples of mortgage products we can approach with many more offering interest rates and flexibility to meet your needs.

1.16% Fixed Rate
60% Loan to Value
£1,525 App Fee
Until 01/11/2022
Reverts to 4.09%
1.19% Fixed Rate
60% Loan to Value
£999 App Fee
2-Years Time
Reverts to 3.59%
1.18% Fixed Rate
60% Loan to Value
£1,034 App Fee
Until 31/10/2022
Reverts to 3.59%
1.17% Fixed Rate
60% Loan to Value
£1,025 App Fee
Until 31/09/2022
Reverts to 3.59%

The latest mortgage news


27 Apr 2022

Mortgage costs hit a five year high as central banks raise base rates

After the Bank of England raised base rates to 0.75% lenders have reacted by increasing the cost of mortgages reaching a five year high.

16 Apr 2022

House prices in seaside towns rise 8pc as demand remains strong

Homes on the coast attract a premium and house prices are up 8% on the previous year as buyers seek to improve their quality of life.

14 Mar 2022

15 million homes can benefit from energy efficiency upgrades

Detached homes face the biggest energy costs due to lack of efficiency and in need of upgrades as we face a rise in the fuel energy cap.

25 Feb 2022

Detached home values at £425,000 with higher demand

The average value of detached homes has increased at twice the rate of smaller properties to £425,000 with a surge in buyer demand.

Call for your free quote 0800 955 0058

  • IMPORTANT

    Equity Release may involve a Lifetime Mortgage or a Home Reversion Scheme. To understand the features and risks, please ask for a personalised illustration. Equity Release may affect your entitlement to means tested state benefits and will impact on the size of your estate. For Equity Release London City Mortgages charge a fixed fee upon completion of £695. For Mortgages a fixed fee is charged on application. Typically this is from £295 up to £495 for the services selected.

  • WARNING

    Equity Release - Equity Released from your home will be secured against it. Mortgages – Your home may be repossessed if you do not keep up repayments on your mortgage or other loans secured against it. Think carefully before securing other debts against your home. The information contained in this website is subject to the UK regulatory regime and is therefore intended for consumers based in the UK.

    CONTACT

    Address:
    9th Floor, 30 Crown Place
    London, EC2A 4EB

    Phone:
    0800 955 0058

    Email:
    info@londoncitymortgages.co.uk

    London City Mortgages Limited is a registered company in England & Wales under company number 09278987. London City Mortgages Limited is an Appointed Representative (FCA no. 655965) of Blackstone Moregate Limited (FCA no. 459051) which is authorised and regulated by the Financial Conduct Authority. LCM and LCM Equity Release are trading names of London City Mortgages Limited.

    2022 © London City Mortgages.
    Website designed & developed by Spyre Media