The cost of moving from a two bedroom flat to a three bedroom house in the UK is highest in St Albans where the average price difference is £185,640, a new analysis report has found.
The move, which is most often made by people with growing young families, is a sector of the housing market which is much in demand but it can be costly, according to the research from agents Strutt & Parker.
The second most expensive trading up difference is in Winchester at £160,108, followed by Chichester at £142,157, Brighton and Hove at £122,215 and Ely at £107,047.
Agents believe such premiums are down to the volume of growing families trading up as well as baby boomers downsizing, both wanting a three bed home in an amenity rich city location.
With increased demand and limited supply, south eastern cities ranked highest on the cost to trade up, whilst Liverpool came out as the most affordable with the potential to buy a larger property at no additional expense.
‘The largest price gaps are where competition for three bed houses is at its highest. These family homes are a property sweet spot, attracting interest from buyers even at times when the rest of the housing market is relatively static,’ said Stephanie McMahon, head of research at Strutt & Parker.
‘The most expensive cities generally reflect markets that are popular with growing families. Four of the top five are in the commuter belt, so this trend is most acute for those who have relocated from London,’ she explained.
The analysis of data from property portal Rightmove also shows that the extra cost is £104,809 in Wells, £102,338 in Salisbury, £98,698 in Cambridge, £87,356 in Canterbury and £85,450 in Hereford.
The most active purchasers are young parents with growing families. Many look to commuter cities for the perfect mix of commutability, lifestyle and schooling. ‘For young professionals looking to upsize within St Albans, they face stiff competition from London buyers seeing St Albans as the commuter city of choice thanks to a 19 minute journey time and pretty medieval centre,’ said Rozanne Edwards head of Strutt & Parker in St Albans.
‘This makes the three bedroom home here in huge demand, often attracting competitive bids and selling within days of launch. This mix of locals and Londoners, from couples to young families, is a pressure point for our market. Demand in St Albans is far out stripping supply at the moment, so with this trend likely to sustain, it is unsurprising that we are at the top of the list for price premiums,’ she pointed out.
According to Guy Robinson, head of regional residential agency at Strutt & Parker, key cities outside of London are showing exceptional growth. ‘These in-demand cities correlate strongly with trading up data, including the likes of Canterbury, Cambridge and Salisbury. These historic Cathedral cities offer the ultimate suburban idyll, a lifestyle mainly families aspire to,’ he said.
There are some surprising results however, where much of this disparity is due to high value flats in urban locations, with limited equivalent family housing. McMahon pointed out that places like Bristol or Glasgow that rank as some of the best value cities for the growing family both have a good mix of housing stock.
The cost of an extra bedroom can be too much for some buyers, according to Rightmove director and housing market analyst Miles Shipside. ‘Moving home can be challenging enough, but having put your roots down in one location, having to then look much further afield to trade up with a family in tow is harder still,’ he said.
‘However, that’s the situation people find themselves in with the extra bedroom cost being too big an affordability gap in many local markets. First time buyers should not just look at the cost of their first home, but also do their research on whether their next step up the ladder is achievable locally too. Planning ahead now will keep you ahead in the future as your space and lifestyle needs change,’ he added.
