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PROPERTY PRICES ARE INCREASING IN Q3. RESERVE BEFORE 25TH MAY TO SECURE OLD PRICING

The Space Race: Property Costs Per Square Foot Explained

Investing in rental properties can be highly rewarding, particularly when done strategically. For potential investors, terraced houses in the North of England represent an excellent investment opportunity, offering unparalleled value for money in today’s affordability-challenged housing market. 

Below, we explore why this property type and location stand out, referencing key data provided by Zoopla.

Affordable Price Per Square Foot

The average UK home costs £300 per square foot, but prices vary significantly by region. In the North East, the average is just £145 per square foot, making it the most affordable region in the UK. By comparison, London averages £585 per square foot, and hotspots like Kensington and Chelsea climb as high as £1,373 per square foot.

For investors seeking high returns on investment, properties in areas like Hartlepool (the cheapest at £118 per square foot) offer excellent affordability and potential yield. This affordability also means lower upfront costs, enabling investors to diversify portfolios or invest in properties with greater rental appeal.

Terraced Houses: Best Value for Money

Terraced homes consistently deliver the best value per square foot across the UK, according to Zoopla. Prices for terraced properties range from £225 for a two-bedroom to £235 for a four-bedroom. This is significantly lower than detached or semi-detached properties, which typically command higher price tags per square foot.

Terraced homes often combine affordability with desirable features such as private gardens and central locations, making them attractive to renters ranging from young professionals to small families.

Growing Demand in the North

The North of England is experiencing a surge in housing demand, driven by its affordability, improved transport links, and growing economic opportunities. Inverclyde, for example, saw the largest price increase outside London, with home values rising by 13.2% since 2023. This growth demonstrates the region’s appeal and suggests strong potential for future capital appreciation.

Seaside and Port Town Opportunities

Historical seaside resorts and port towns in the North offer some of the best value for investors. These areas often come with a rental market driven by local workers, students, and tourists. 

Space Matters: Why Price Per Square Foot is Key

David O’Neil from Find UK Property obeserves: 

“Unlike in many countries where floor space is a primary deciding factor for homebuyers, UK buyers often focus on bedroom count. Yet, comparing homes on a price-per-square-foot basis can reveal better value. For investors, this metric ensures investments are made in properties offering both adequate living space and rental appeal.”

“Terraced houses provide excellent use of space, often offering more living area than similarly priced flats or smaller semi-detached homes. Renters benefit from features such as extra reception rooms, storage, and private outdoor areas—enhancing tenant satisfaction and reducing vacancy rates.”

Conclusion: A Winning Investment Strategy

For investors, the North of England presents a compelling opportunity to invest in high-value properties with strong rental potential. Terraced houses stand out as the best option, combining affordability, space, and tenant appeal.

By focusing on regions like Hartlepool and taking advantage of the lower price per square foot, investors can maximize both short-term rental yields and long-term capital appreciation. With demand rising and regional economies strengthening, the time to invest in the North has never been better.

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