For the vast majority of first-time buyers, getting on the property ladder is challenging enough. But if you wanted to buy into the top 10% of your local property market, how much more would you need to get there?
New research by London lettings and estate agent, Benham and Reeves, has revealed just what it takes to make it into the top 10% of the market by analysing house price data over the last 12 months and looking at the average house price across each area of England, as well the price paid by the top 10% of homebuyers.
The research shows that nationally, homebuyers have paid out an average of £281,280 over the last year. However, the top 10% of the market have paid an average of £623,860 - £342,570 more and a 122% property price premium vs the average buyer.
London remains home to the biggest leap between the average homebuyer at the top 10% of the market. The average price paid for a home in the capital has been £508,801 over the last 12 months, with the top 10% of the market paying £1.13m - a gap of £621,199.
Neighbouring Surrey ranks second, where the top 10% of the market have paid £1.04m on average over the last year, £555,209 more than the average homebuyer in the county.
Across Hertfordshire (£424,107), Bath and North East Somerset (£406,635) and Buckinghamshire (£401,741) the house price gap between the top 10% and the average homebuyer also sits above £400,000.
Other areas to make the top 10 biggest market gaps include Oxfordshire (£385,312), East Sussex (£370,594), Berkshire (£364,835), West Sussex (£348,140) and Rutland (£334,300).
Lincolnshire is home to the smallest market gap between the average homebuyer and the top 10%. The average homebuyer has paid £210,575 over the last 12 months versus £373,000 paid at the top tier of the market - a gap of just £162,425.
Marc von Grundherr, Director of Benham and Reeves, commented: “Much has been made about the fact that London has underperformed the rest of the UK during the pandemic property market boom and this is true to some extent. Despite this, the capital remains very much the jewel in the crown both where the average value of a home is concerned, as well as the price paid at the very top of the market and the gulf between the two.
"However, those lucky enough to buy in the top ten per cent of any market will require a substantially higher budget compared to the average homebuyer, so it’s an impressive accolade whether it’s achieved in London or Lincolnshire.
"Of course, for many, the dream of homeownership is a huge one to accomplish regardless of where we choose to buy and at what tier of the market we buy within.”