If you are looking for a property investment that grows in value, then the bad news only 24 towns have registered a price rise since property prices peaked and crashed in 2007.
The average property price per square metre (M2) has fallen by a fifth (21%) since 2007, according to figures released by The Halifax.
The hot spots leading the way to property profits are Ellon, Aberdeenshire, Scotland, where prices are up 26% – followed by five the London boroughs of Islington (20%), Camden (17%), Westminster (16%), Hackney (13%) and Hammersmith and Fulham (12%).
Although these are the places with most capital appreciation, they are not the most expensive or cheapest.
Cities in London and the South East are the most expensive places to buy –
10 Most Expensive UK cities based on price per square metre
| City | Region |
Price per M2 |
10 Year change |
Average Size M2 |
| Westminster | Greater London |
7,586 |
81% |
71 |
| St Albans | South East |
3,227 |
46% |
111 |
| Oxford | South East |
2,821 |
39% |
101 |
| Winchester | South East |
2,813 |
48% |
120 |
| Chichester | South East |
2,638 |
56% |
110 |
| Cambridge | East Anglia |
2,634 |
58% |
96 |
| Brighton | South East |
2,549 |
50% |
99 |
| Bath | South West |
2,376 |
54% |
121 |
| Edinburgh | Scotland |
2,125 |
63% |
93 |
| Salisbury | South West |
2,060 |
39% |
140 |
Source: Halifax: 12 months to July 2012
Most of the cheapest cities to buy a property are also clustered – mainly in the North East of England and Northern Ireland:
10 Cheapest cities based on price per square metre
| City | Region |
Price per M2 |
10 Year change |
Average Size M2 |
| Londonderry | Northern Ireland |
817 |
31% |
131 |
| Lisburn | Northern Ireland |
945 |
8% |
115 |
| Hull | Yorkshire and Humberside |
1,027 |
74% |
99 |
| Bradford | Yorkshire and Humberside |
1,042 |
77% |
103 |
| Swansea | Wales |
1,063 |
66% |
116 |
| Belfast | Northern Ireland |
1,064 |
11% |
99 |
| Durham | North |
1,104 |
53% |
110 |
| Stoke On Trent | West Midlands |
1,126 |
63% |
101 |
| Sunderland | North |
1,129 |
64% |
105 |
| Newport (Gwent) | Wales |
1,134 |
60% |
109 |
Source: Halifax: 12 months to July 2012
Martin Ellis, housing economist at The Halifax, said: “House price per square metre is a useful measure for house price comparison because it helps to adjust for differences in the size and type of properties between locations.
“Several towns in Aberdeenshire have seen significantly higher growth in average price per square metre than the UK average over the past decade; this, on the main, has been driven by the booming oil industry, which is a key part of the local economy.
“Westminster has the most expensive prices in the UK on a price per square metre. Interestingly, it also has the smallest average property size in the country. Not only has Westminster got one of the highest population densities per square kilometre among UK cities, but it also has a large proportion of properties that are flats”.
