Skyrocketing price of living in a spa town
Quality of life and “a sense of history” means it costs homebuyers an average premium of nearly £50,000 to live in a spa town in England or Wales, research has found.
A Lloyds TSB study found that house prices in British spa towns in England and Wales are around 27 per cent, or £48,123, higher than those elsewhere in the county where they are located.
Prices in these towns have soared by approximately £1,077 per month, or £130,000 overall, since 2001.
The hikes mean that homes in spa towns now cost 8.3 times gross annual earnings, up from six times earnings in 2001.
Ilkley in West Yorkshire boasted the highest premium, at almost double the prices in surrounding areas. Average house prices in Ilkley were just under £300,000.
Boston Spa, also in West Yorkshire, came in second place with an 85 per cent premium, while Bath was in third place with buyers paying just over 50 per cent more than the county average.
Five spa towns have seen house prices more than double in the past decade.
Homes in spa towns continue to command a substantial premium over their neighbouring areas. Suren Thiru, Lloyds TSB
Suren Thiru, housing economist at Lloyds TSB, said: “Homes in spa towns continue to command a substantial premium over their neighbouring areas with the quality of life benefits and sense of history that typically characterise such locations still resonating amongst home buyers.
“However, as a consequence of rising property prices, housing market conditions in spa towns have become tougher over the past decade, particularly for those looking to get on the property ladder for the first time.”
The largest increase was seen in mid-Wales, in Builth Wells, which saw a 170 per cent rise to reach £183,050.
Epsom in Surrey was named as the most expensive spa town, with an average house price of £339,231.
Surging house prices in spa towns: Top 10 from 2001 – 2011
1. Builth Wells, Powys, £183,050, Up 170 per cent
2. Llandrindod Wells, Powys, £155,469, Up 109 per cent
3. Harrogate, North Yorkshire, £264,113, Up 107 per cent
4. Buxton, Derbyshire, £187,886, Up 105 per cent
5. Boston Spa, West Yorkshire, £277,584, Up 103 per cent
6. Knaresborough, North Yorkshire, £279,869, Up 100 per cent
7. Matlock, Derbyshire, £205,335, Up 95 per cent
8. Cheltenham, Gloucestershire, £271,555, Up 94 per cent
9. Church Stretton, Shropshire, £272,576, Up 92 per cent
10. Tenbury Wells, Worcestershire, £237,127, Up 89 per cent