House price growth in London has under-performed the rest of the UK for several years due to the affordability squeeze in the capital, and with a growing number of people moving out of the city, more blue-chip companies are opening regional offices, which in turn is helping to redraw the UK house price map is being re-drawn.

The pandemic-fuelled race for space has led to the emergence of more £1m property markets outside of London, reflecting higher price growth in the regions.

A more accurate yardstick would be the number of £1,000 per square foot property markets, which is also increasing outside the capital, according to Tom Bill, head of UK residential research at Knight Frank.

“Pounds per square foot is a better way of gauging the popularity of a location rather than how large its properties are. Size, as they say, isn’t everything,” he said.

 Tom Bill

Unsurprisingly, all wards in England and Wales with a median price of more than £1,000 per square foot are in London. The wards of Knightsbridge and Belgravia (£2,237) and Brompton and Hans (£2,022) head the list and are the only two areas in the country where the figure exceeds £2,000.

However, outside the capital, there are five wards where the top 10% of sales exceed £1,000 per square foot, suggesting the median in these locations will soon exceed the threshold. They include two parts of OX2 in Oxford and three areas to the south-west of London.

“The market in north Oxford has the classic drivers of great properties, shopping and schools,” said William Kirkland, head of Knight Frank’s Oxford office. “From Summertown you can walk to some very good state and independent schools, which is why people are still choosing to come here from London.”

“Outside of London, it’s no surprise to see Oxford and parts of the south-east near the top of the list,” said Tom. “More areas will join them as property prices across the UK continue to re-balance in coming years, a trend that has been accelerated by the pandemic.”

Via @PropertyIndustryEye