The race for the Premier League title is starting to get very interesting and this year is one of the most open in recent memory. This season’s Premier League has been truly unpredictable, but one thing that’s very predictable is the effect of top level football on house prices. Reports conducted by Nationwide and Halifax consistently show that houses that are based close to Premier League football stadiums routinely outperform the rest of the UK in price growth.
It seems that the prestige that comes from being close to a Premier League stadium outweighs the inconvenience of busy match days. Clearly the proximity to the football ground allows homes to soak up the atmosphere of the matches too.
Perhaps nowhere is the value of a Premier League stadium better shown than in Manchester. Postcodes close to the Manchester teams have seen impressive growth. In the decade up to 2013, prices in the same postcode as Old Trafford rose to nearly £180,000, an increase of over 69 per cent. But Manchester United found themselves second best in the city (in property terms at least) as house prices around Manchester City’s Etihad Stadium have risen an impressive 259 per cent – the best in the UK over that period.
Perhaps unsurprisingly London saw a number of strong performers too with homes around Chelsea’s Stamford Bridge rising to an incredible over £850,000, a rise of 102 per cent. Close behind was Arsenal’s Emirates Stadium which saw an average rise of 101 per cent, up to £640,000. This is set against a backdrop of exceptionally high price rises across London. Merseyside also saw strong growth rates as houses around the Liverpool and Everton stadiums saw rises of 97 per cent over that time.
However, it wasn’t all good news and it seems that even the lures of the Premier League could do nothing for some parts of the country. Southampton saw an unimpressive rise of 18 per cent over the course of the decade. This is below inflation so it actually amounts to a decrease in real terms. However, this was nothing compared to Newcastle which actually saw an 11 per cent decrease in house value around the stadium.
Overall, however, it was certainly the case that the presence of a Premier League football stadium was a positive for house prices. Indeed areas with a football stadium saw an average increase of 135 per cent over the decade, while the UK average sat at around 68 per cent during the same period.
In the 2014/15 season Crystal Palace topped the table in terms of house price growth. People living in Croydon, where the south London club is based, saw the value of their homes rise by an average of £50,000 in real terms, or a fist-pumping 17 per cent overall. On the other hand Sunderland found themselves truly in the relegation zone; they were the only club that saw house prices in their area drop as they fell by 4 per cent over the course of the season.
It will now be interesting to see whether Palace can hold on to their top spot by the end of the 2015/16 season or whether they can be usurped. Like this season’s title race, nothing is certain and anything could happen.
Article provided by Sara Bryant, independent content writer for Prime Centrum, property consultants who were consulted over the content.