House prices are higher in spa towns
17 November 2006
Source: HBOS
New research from Halifax Estate Agents highlights that home buyers are prepared to pay a premium to live in a spa town. All 18 spa towns have higher average house prices than their region, while 16 out of 18 spa towns have higher average house prices than the neighbouring towns in their county.
Larger houses, high employment and low traffic levels in spa towns
Spa towns tend to rank highly for key drivers of the quality of life. 16 out of 18 spa towns are in local authority (LA) areas, which have larger than average houses. Owner occupation rates are higher than average in the LAs of 15 spa towns, while traffic levels are lower than average in the LAs of 15 spa towns. 16 spa towns are in LAs, which have higher than average employment levels.
Epsom and Tunbridge Wells are most expensive spa towns
Epsom in Surrey is the most expensive spa town with an average price of £297,354, followed by Tunbridge Wells in Kent (£279,978) and Boston Spa in West Yorkshire (£277,215). The least expensive spa towns are Llanddrindod and Builth Wells, both in Powys in Wales with average house prices of £158,687 and £173,405 respectively.
Builth Wells has seen the strongest house price rises over past five years
Builth Wells in Powys has also been the best performing spa town over the past five years with a 144% increase in its average house price, followed by Boston Spa in West Yorkshire (112%) and Matlock in Derbyshire (103%). The ten best performing spa towns since 2001 are all outside the south of England. Three of the five spa towns with the smallest house price increase over five years are in the South of England.
KEY FINDINGS
House Prices (See Tables 1)
• All 18 spa towns have higher average house prices than the average house price in their region, while 16 out of 18 spa towns have higher average house prices than the neighbouring towns in their county.
• Fifteen out of eighteen spa towns have an average house price above £200,000. All spa towns in the South East, South West, West Midlands and Yorkshire and the Humber have an average house price above £200,000.
• Eight spa towns trade at a premium of more than 30% to the average house price in their county and nine of these are located outside the south of England. Three are located in Yorkshire & the Humber (Boston Spa, Ilkley and Knaresborough), three in the East Midlands (Shearsby, Matlock and Woodhall Spa) with one each in the South West (Bath) and the South East (Tunbridge Wells) . The premium is largest in Boston Spa (95%) and Ilkley (88%), both in West Yorkshire and Bath (38%).
• There are two spa towns which trade at a discount to the average house price in their county – Llandrindod Wells in Powys (7%) and Epsom in Surrey (1%).
House Price performance (See Tables 2 & 3)
• Five spa towns have seen a doubling of their average house price since June 2001. Two are in Wales with two in the East Midlands and one in Yorkshire & the Humber. 11 out of 18 spa towns have seen stronger price growth than the average for England and Wales of 74% over the past five years.
• Over the past year the best performing spa town was Llandrindod Wells in Powys, the most inexpensive spa town, with a 19% increase in its average house price. This was followed by Knaresborough in North Yorkshire (14%) and Buith Wells in Powys (14%).
Quality of Life performance
• Harborough, the LA in which Shearsby is located, was ranked 31st in the 2006 Halifax quality of life survey. Epsom and Bath were the other spa towns ranked in the top 50. Nine spa towns were part of LAs which were ranked in the top 10 in their region.
• Employment rates are above the national average of 74.9% in the LAs of 16 out of 18 spa towns. The highest employment rate is in the LA of Harborough (87.1%), home of Shearsby.
• Owner Occupation rates are above the national average of 70% in 15 out of 18 spa towns. The highest rate is in LA of Harborough (84%), home of<
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