Revealed: The areas that have seen house prices increase by more than six times in two decades
New research from Halifax has identified the areas where property prices have increased by more than six times since 1997.
By calculating the average price per sq m, which gives a clearer picture of values by adjusting for the differences of size and type of home across areas, it found that London boroughs continue to dominate the country's list of the most expensive property locations.
Over the past 20 years, property prices per sq m in southern England have risen significantly ahead of the rest of Britain, with prices growing by 402pc in Greater London compared with a national increase of 236pc.
In the last five years alone, London prices per sq m have increased 57pc – from £3,259 to £5,115. This compares to Scotland, which saw the smallest increase for the last five years, with prices increasing by 12pc, or £164, to £1,529.
Hackney has seen prices increase by more than eight times in two decades
Hackney, in east London, has seen the largest increase in the country in average prices per sq m since 1997, with prices rising from the low level of £814 to £6,942, as it attracted artists with cheap rents, then became gentrified.
This marks an increase of 753pc across two decades – nearly twice the London average of 402pc.
The average price per sq m across Britain has increased by 236pc over the past 20 years, from £672 in 1997 to £2,260 in 2017.
But this is dwarved by the increases seen in London, with many boroughs in the capital recording prices increasing six-fold since 1997.
Nine of the 10 areas that have seen the biggest increases over the last 20 years are in London, with Hove in East Sussex the only other area outside the capital to make the list.
There are only 12 non-southern towns which have seen increases larger than the national average
Outside London and the south of England, there were still significant increases in house prices over the last two decades: some 12 non-southern towns have recorded price gains in excess of the national average since 1997. But these are not comparable to the huge gains recorded by the capital.
The largest of these was Sale in the North West, where property prices per sq m increased by 280pc – from £656 in 1997 to £2,497 in 2017.
The areas to see the next largest increases were the Midlands towns of Leamington Spa and Rushden, where property prices per sq m more than tripled over the last two decades.
Where are the most expensive towns in the country?
Unsurprising, all of the top ten most expensive towns or boroughs reside in London – with huge increases in price per sq m helping to boost their property values further.
The central London borough of Kensington and Chelsea has the highest price per sq m in 2017 at £11,192.
Westminster and Camden have the next highest prices, at £9,425 and £9,373 respectively.
Outside southern England there are nine areas that have a higher price per sq m than the national average of £2,260, including Altrincham, Sale and Cheadle in the North West, and the West Midlands towns of Leamington Spa and Solihull.
Russell Galley, managing director of Halifax, said: "House price per square metre can be a useful measure for house price comparison as it helps to adjust for differences in the size and type of properties between locations.
"Unsurprisingly, there are parts of central London that are substantially more expensive than anywhere else in the country.
"However, we can see a number of notable pockets emerging outside the South of England, particularly in the West Midlands and North West. Over the last 20 years the gap between southern England, particularly London, and the rest of the country has increased substantially – a trend that has continued during the last five years."