HOUSE prices continue to surge in Southampton as its "unique" offering appeals to London commuters, an expert has explained.

The boost contributes to the longer-term trend, which has seen property prices in the area achieve 10.2% annual growth.

On average, a city house in November was valued at £233,355, Land Registry figures show.

Over the month, the picture was better than that across the South East, where prices increased 0.5%, and Southampton outperformed the 1.2% rise for the UK as a whole.

Over the last year, the average sale price of property in Southampton rose by £22,000 – putting the area 34th among the South East’s 64 local authorities with price data for annual growth.

Nicholas Mendes

Nicholas Mendes

Nicholas Mendes, mortgage technical manager at John Charcol in the city, explained the rising prices: "Southampton is unique in terms of its surrounding and transport connections.

"People have moved from London and towns in proximity, looking for the freedom living along the coast offers.

"If we take commuting, life has shown that you no longer need to be in a 40min/1 hour commute window from home to work. We have the flexibility to travel 2 days a week or work from Home. Southampton has connections to Reading, Basingstoke, London, as well as the key routes in the north.

"As a result, the Location, and what we are looking for has changed. With the commute no longer the main driver household now have the freedom to move into new regions that balance with work life balance."

He added that the space we are need to have more room to work has has meant houses that have more space to internally and room to expand has been an area of focus.

Mr Mendes continued: "It’s interesting to note we have seen in the latest industry-wide figures reported to the Second Charge Loan Index, compiled by specialist broker Loans Warehouse, showed second-charge lending totalled £137million in November – the highest since 2009 – and has now surpassed the £1bn lending mark for 2021. As more household looking to expand drive this increase in 2nd charges.

"Homes in the south typically have more space than London counter parts.

"Although we have seen property prices increase, this isn’t all doom and gloom.

"The past few months have seen lenders change their criteria in terms of affordability, the pandemic saw lenders either discount or reduce the % in bonus, commission, and overtime, this has east.

"Lenders are also offering longer term fixed rates as well as easing affordability multiples meaning household can potentially borrow more than they could this time last year."

Winners and Losers

Owners of detached houses saw the biggest improvement in property prices in Southampton in November – they increased 3.8%, to £412,463 on average. Over the last year, prices rose by 12.7%.

Among other types of property:

Semi-detached: up 3.3% monthly; up 12% annually; £292,047 average

Terraced: up 2.8% monthly; up 10.2% annually; £238,314 average

Flats: up 2.8% monthly; up 7.9% annually; £163,293 average

First steps on the property ladder

First-time buyers in Southampton spent an average of £208,000 on their property – £19,000 more than a year ago, and £29,000 more than in November 2016.

By comparison, former owner-occupiers paid £268,000 on average in November – 28.6% more than first-time buyers.

How do property prices in Southampton compare?

Buyers paid less for properties in Southampton than anywhere else in the South East in November. The average price paid in Elmbridge (£692,000), at the other end of the scale, would buy three homes in Southampton.

The highest property prices across the UK were in Kensington and Chelsea.

Across the South East, property prices are lower than those across the UK, where the average cost £271,000.

Average property price in November

  • Southampton: £233,355
  • The South East: £369,093
  • UK: £270,708

Annual growth to November

  • Southampton: +10.2%
  • The South East: +9.6%
  • UK: +10%