Young professionals paying £71,000 premium to live in popular areas

Young professionals paying £71,000 premium to live in popular areas [Photo: apomares via iStock]

Young professionals looking for a place to buy are having to spend far above the national average if they happen to be seeking out a home in one of the UK's most popular areas, a new study has discovered. 

The research that was published this week by Lloyds Bank shows that the average price young professionals are spending in the 20 most popular postcodes across the UK is £71,000 higher than the average elsewhere. 

It said that the average price paid in these areas is some £735,874, which compares to the £664,716 paid in the surrounding areas to these postcodes on average. It means that in order to live in one of the UK's most popular and trendy areas, young people are facing a 13 per cent premium. 

Lloyds Bank mortgage products director Andrew Mason said that prices are so high because these houses are in high demand, and because the young people who want to live there are not put off by the high prices they are asked to pay. 

"Aspiring young professionals are typically well qualified, in well paid jobs and tend to live in areas not far from the city centre where they work. These are also places where they can enjoy easy access to green space and a range of places to socialise. These buyers also don’t appear to be put off by the significant premium in price to live in areas popular with young professionals," he said. 

According to the report, the most popular area of the UK remains Hove, on the south coast, with Brighton, its near neighbour, coming in at seventh place on the list. Of the remaining 18, 16 are located in London, with Wimbledon and Wandsworth among the most popular in the capital. 

The only other two areas outside of London on the list are Didsbury and Reading, with the former, a part of Greater Manchester, being the only northern town to make the list.