The average value of a home in one of the UK's major cities is approximately seven per cent higher than those found outside urban areas, new research published by Halifax has shown. As a result, such real estate assets are typically GBP 14,462 more expensive than those in county locations. The top ten cities that command the highest premiums can be found in the south of England, with Westminster recording the greatest average home price at GBP 570,964.
Halifax also noted that properties based in cities have withstood the economic downturn better than their rural counterparts, shedding an average of 17 per cent of their value between 2007 and 2009, compared to the national average fall of 24 per cent in the same period. Housing economist at the financial institution Suren Thiru commented: "City house prices are generally supported by demand from those looking to gain from the economic and lifestyle benefits often associated with residing in major urban areas."
Investors are already targeting metropolitan regions, particularly London, according to Liam Bailey, head of residential research at Knight Frank. Last week he noted that price rises in the capital have not affected demand from foreign buyers, with many international investors viewing the city as a safe haven during difficult economic times.