Halifax

Chelsea takes the title before the first ball of the Premier League is even kicked

30 July 2015

  • Life imitates art as last season’s Premier League top three also top the house price performance table
  • The average house price close to a Premier League ground has increased by 78% over the last 10 years, and is 10 times higher than national average gross annual earnings

With the 2015-16 Premier League season less than a week away Chelsea have already been confirmed as champions…at least in terms of local house prices increases over the last 10 years, according to research by Halifax.

Over the last decade, the average home value in the postal district surrounding Chelsea’s Stamford Bridge stadium has risen by 132%, rising from £476,101 in 2005 to £1,103,398 in 2015.

House prices mirror Premier League success

Chelsea have taken over from last season’s winners, Manchester City, both as League champions and at the top of the table for property price rises.

And while they may have finished as runners-up in last season’s Premier League, Manchester City only saw the third biggest rise in property prices in the area close to the Etihad stadium over the past ten years, with an increase of 119% from £49,122 in 2005 to £107,736.

Going one better than their league position last year the area around last season’s FA Cup Winners Arsenal’s Emirates Stadium have seen the second biggest increase with a rise in average property prices of 130% (from £360,902 to £828,537) during the last decade.

Premiership newcomers

Of the three new teams in the Premiership this year Bournemouth, Leicester and Watford, it’s Bournemouth who claim the first bragging rights with a 36% increase in house prices in the last decade, ahead of Watford (26%) and Norwich (25%).

However, in terms of house prices increases, all three are sitting comfortably mid-table whereas at the other end of the table, Newcastle United finished bottom of the Premier League house price table.

Here the average value of properties close to St James’ Park fell by 33% between 2005 and 2015; making it the only stadium to record a decline in prices over the past decade. Southampton (2%), Aston Villa (7%) and West Bromwich Albion (8%) were the next poorest performers, all recording single digit percentage rises in the last ten years (See Table 1).

Craig McKinlay, Mortgage Director, Halifax said:

“The success of the Premier League in recent years appears to have rubbed off on property prices in the areas surrounding many of our leading teams’ grounds. In the last decade average house prices immediately outside some of the country’s top clubs have seen price rises that far outstrip the country as a whole. Some areas – but not all – have benefitted from clubs moving to a new stadium and all the associated infrastructure improvements.

“There is also a strong correlation between house price performance and results on the pitch with last season’s top three also heading the house price performance table for the past decade. However, we’ll have to enjoy the next season before knowing if this remains the same next year.”

Huge price variations around Premier League grounds

  • Out of the current Premier League teams, the postal district around Chelsea’s Stamford Bridge ground (SW6) is also the most expensive area to live in, with an average house price of £1,103,398. This is sixteen times the average price in the least expensive Premier League postal district of L4: home to both Liverpool and Everton Football Clubs, where the average house price is £68,883 (See Table 1).

The price of living close to a ground

  • Average house prices close to Premier League football grounds have increased by 78% over the last ten years. This increase is significantly higher than the 43% rise recorded in home prices across England and Wales as a whole over the decade.
  • The average house price in the surrounding postal districts of the 20 clubs contesting the Premier League for 2015/16 is £312,104 – a fifth (£49,717) higher than the average for the whole of England and Wales (£262,387). This represents an average increase of £136,434 during the past decade; from £175,670 in 2005 to £312,104 in 2015, equivalent to a weekly rise of £262.

Capitalising on the London market

  • At £312,104, the average house price close to a Premier League ground may not stretch to buying a Premier League footballer, but it’s a different story for almost everyone else, as this is 10 times higher than national average gross annual earnings. 
  • While four of the five least affordable Premier League postal districts are in the capital, it’s not the same story at all other grounds around the country. Chelsea has the least affordable Premier League postal district with the average property price of being more than 21.3 times annual gross average earnings in the area.
  • Arsenal (15.5x) is in the second least affordable postal district, followed by Tottenham Hotspur (9.8x) and Premier League newcomers Bournemouth (9.5x).
  • However, at the other end of the league, the postal district L4 – home to Liverpool and Everton – is the most affordable Premier League postal district with the price of the typical home just over double (2.3) gross annual average earnings (See Table 2).

ENDS

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