House prices soar in Merthyr Tydfil

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by Kay Murchie

According to the latest Halifax house price index, the Welsh town of Merthyr Tydfil has recorded the largest property price per square metre in the UK.

The Halifax established that Merthyr Tydfil has seen a rise of 203% in property prices per square metre, up to £1,331 in 2007 from £439 in 2002.

Unlike the main index, the house price index per square metre is adjusted to consider differences in property size and type across different areas of the country.

The Welsh town was the cheapest town in the UK based on this in 2002 but it is now outside of the bottom 10, although prices are considerably below the UK average of £2,158 per square metre.

The most expensive property per square metre in the UK is in Kensington & Chelsea with an average £8,386, according to the Halifax. In addition, the 10 most expensive UK areas are all in Greater London.

However, according to the Halifax, it is Northern Ireland which has seen the strongest growth over the last 5 years. Seven of the 10 towns with the highest house price growth on a per square metre basis over the past 5 years are in Northern Ireland.

Craigavon has noted the second largest gain in the UK of 186% since 2002 followed by Ballymena experiencing a 180% gain. Prices have increased due to a high demand for properties from second homebuyers and a strong local economy.

The lowest average price of £1,128 per square metre of all UK towns in 2007 was in Wishaw in Lanarkshire while Peterlee in County Durham recorded the second lowest price (£1,135 per square metre).