Home Residential PropertyWhat it takes to be a top 10% homebuyer

What it takes to be a top 10% homebuyer

by LLP Editor
12th May 22 10:59 am

While getting that all important foot on the property ladder is hard enough for the average homebuyer, research by London lettings and estate agent, Benham and Reeves, has revealed just what it takes to make it into the top 10% of the market.

Benham and Reeves analysed house price data over the last 12 months, looking at the average house price across each area of England, as well the price paid by the top 10% of homebuyers.

The research shows that nationally, homebuyers have paid out an average of ยฃ281,280 over the last year. However, the top 10% of the market have paid an average of ยฃ623,860 – ยฃ342,570 more and a 122% property price premium vs the average buyer.

London remains home to the biggest leap between the average homebuyer at the top 10% of the market. The average price paid for a home in the capital has been ยฃ508,801 over the last 12 months, with the top 10% of the market paying ยฃ1.13m – a gap of ยฃ621,199.

Neighbouring Surrey ranks second, where the top 10% of the market have paid ยฃ1.04m on average over the last year, ยฃ555,209 more than the average homebuyer in the county.

Across Hertfordshire (ยฃ424,107), Bath and North East Somerset (ยฃ406,635) and Buckinghamshire (ยฃ401,741) the house price gap between the top 10% and the average homebuyer also sits above ยฃ400,000.

Other areas to make the top 10 biggest market gaps include Oxfordshire (ยฃ385,312), East Sussex (ยฃ370,594), Berkshire (ยฃ364,835), West Sussex (ยฃ348,140) and Rutland (ยฃ334,300).

Lincolnshire is home to the smallest market gap between the average homebuyer and the top 10%. The average homebuyer has paid ยฃ210,575 over the last 12 months versus ยฃ373,000 paid at the top tier of the market – a gap of just ยฃ162,425.

Director of Benham and Reeves, Marc von Grundherr, commented: โ€œMuch has been made about the fact that London has underperformed the rest of the UK during the pandemic property market boom and this is true to some extent. Despite this, the capital remains very much the jewel in the crown both where the average value of a home is concerned, as well as the price paid at the very top of the market and the gulf between the two.

However, those lucky enough to buy in the top ten per cent of any market will require a substantially higher budget compared to the average homebuyer, so itโ€™s an impressive accolade whether itโ€™s achieved in London or Lincolnshire.

Of course, for many, the dream of homeownership is a huge one to accomplish regardless of where we choose to buy and at what tier of the market we buy within.โ€

Leave a Comment

You may also like

CLOSE AD