What It Means To Be a Prime Homebuyer
Benham and Reeves revealed what it means to be a homebuyer in the top 10% of the property market.
Stepping onto the property ladder is challenging for many buyers, especially first-timers. But the real estate market is diverse and versatile: it offers properties from affordable studio flats in London to luxury 3-bedroom family apartments.
Researchers at Benham and Reeves analysed average property prices across England in the last 12 months and revealed what it means to be a top 10% property buyer.
Average And Prime Property Markets
According to the research, an average buyer in England bought a home for £281k in 2021. But the numbers reached £623k for the top 10% of the market, meaning a 122% or £342k spike.
Expectedly, the property market in London outperformed other areas regarding the most significant gaps between average and prime properties. In 2021, average buyers bought new homes in London for £508k, while the top 10% of the buyers splashed out £1.13m. It means a staggering leap of £621k.
Nearby Surrey came a close second with a similar gap reaching £555k. Hertfordshire, Bath and North East Somerset, and Buckinghamshire have also shown significant price gaps between average and prime properties (above £400k).
Areas like Oxfordshire, Berkshire, and West Sussex have also made it to the top ten areas regarding the most significant price gaps between average and prime properties.
On the other side of the table is Lincolnshire, with average buyers paying £210k for a property in 2021. And the top 10% of homebuyers in the market paid just £162k more.
What Do Property Specialists Say?
Benham and Reeves confirms several trends of the London property market lagging behind the rest of the UK throughout the pandemic. However, real estate in the capital still outperforms other areas regarding average property prices, prime property values, and a gap between them.
But those buyers in the top 10% of the market need to splash out significantly more than average property buyers. And surely, many buyers dream of homeownership as it is, regardless of which tier of the market they are at.
