Young professionals spend extra £70k for popular postcodes
Young employees in Britain are paying an extra £71,000 to secure homes in England and Wales’ most popular locations, research shows.
A study from Lloyds Bank found that the average price of a home in the 20 most popular areas for young professionals costs £735,874, showing a significant increase from the £664,716 average in the local area.
The most popular area for young professionals to buy is the BN3 postcode in Hove on the south coast of England, with Wandsworth and Wimbledon in London existing as other attractive options.
In Wandsworth, the average property value is £763,418, putting it two per cent higher than the rest of the local area, while Wimbledon prices are 18 per cent more.
Of the top 20 areas with the most sales to young professionals, 16 are based in Greater London. Didsbury in Manchester and Reading are the only areas included outside of the capital.
The highest premium paid by young professionals is in Chiswick, where the average house price of £857,792 is £370,988 (76 per cent) higher than in Hounslow. Kilburn (£341,208) and Hampstead (£307,775) are the next most expensive premiums.
Lloyds Bank mortgage products director Andrew Mason said: “Aspiring young professionals are typically well qualified, in well paid jobs and tend to live in areas not far from the city centre where they work.
“These are also places where they can enjoy easy access to green space and a range of places to socialise.”
Mr Mason added that buyers do not seem to be discouraged by the higher costs of living in communities full of young professionals.
These high premiums are pushing more people into the rental market, especially in London.
South-west London is a particular hotspot, with Wandsworth, Wimbledon, Fulham, Battersea, Streatham and Putney all attracting young people.
Along with Didsbury, other attractive areas for young professionals are Jesmond in Newcastle, Broomhill and Fulwood in Sheffield, West Bridgford in Nottingham and central Cardiff.