As the football season started over the weekend we thought it would be the perfect time to report on the effects that football stadiums are having on the properties surrounding them.
It turns out, over the last ten years, property owners that have the same post code as premier league football stadiums have seen their property’s value more than double. This is according to research that was carried out by Halifax.
The average price of a house that surrounds a football stadium is now 137 per cent higher than ten years ago which means, on average, they have increased from £152,891 to £362,866. With an increase in prices, this also means an increase in landlord insurance for many landlords and property owners that have properties nearby.
Football Stadiums
There are five postal districts that have a premier league football stadium within them that have reported the largest increase in property value. Four of these saw the stadiums built within the last 15 years. Six postal districts with a premier league football stadium have seen the lowest amount of growth, four of which noted that their football grounds had been built before World War II. This shows a strong correlation of the value of a football stadium to an area.
Property Prices
Last year’s premier league champions, Manchester City, saw the biggest increase in property prices over the last ten years. Homes there have seen an average increase in the last ten years of 271 per cent. The second best performing town with a football stadium is home to Aston Villa’s home ground. They saw half the amount of growth that the Manchester City ground provided with a 126 per cent increase. Last of the premier league stadiums and house prices was Newcastle. They had actually experienced a 7 per cent decrease in the value of homes around St James’ Park in the last ten years.
The least affordable postal district with a premier league stadium is SW6, which is home to Chelsea and Fulham which sees property prices at an average of £749,530. This is 14 times the gross average earnings in the area.
Martin Ellis, housing economist at Halifax, has said, “House prices close to the nation’s most iconic football stadiums have risen substantially over the past decade, particularly in the areas near to some of the newest venues. This partly reflects the local regeneration that typically takes places alongside the building of modern sporting arenas, including transport links.”
He added: “This rise in property values does, however, come at a cost with home affordability deteriorating significantly over the last ten years for those hoping to live near their favourite football ground.”