Halifax found all 18 spa towns have higher average house prices than their region, while 16 out of 18 spa towns have higher average house prices than the neighbouring towns in their county.
Larger houses, high employment and low traffic levels in spa towns
Spa towns tend to rank highly for key drivers of the quality of life. 16 out of 18 spa towns are in local authority (LA) areas, which have larger than average houses. Owner occupation rates are higher than average in the LAs of 15 spa towns, while traffic levels are lower than average in the LAs of 15 spa towns. 16 spa towns are in LAs, which have higher than average employment levels.
Epsom and Tunbridge Wells are most expensive spa towns
Epsom in Surrey is the most expensive spa town with an average price of £297,354, followed by Tunbridge Wells in Kent (£279,978) and Boston Spa in West Yorkshire (£277,215). The least expensive spa towns are Llanddrindod and Builth Wells, both in Powys in Wales with average house prices of £158,687 and £173,405 respectively.
Builth Wells has seen the strongest house price rises over past five years
Builth Wells in Powys has also been the best performing spa town over the past five years with a 144 per cent increase in its average house price, followed by Boston Spa in West Yorkshire (112 per cent) and Matlock in Derbyshire (103 per cent). The ten best performing spa towns since 2001 are all outside the south of England. Three of the five spa towns with the smallest house price increase over five years are in the South of England.
Key findings
House Prices
- All 18 spa towns have higher average house prices than the average house price in their region, while 16 out of 18 spa towns have higher average house prices than the neighbouring towns in their county.
- Fifteen out of eighteen spa towns have an average house price above £200,000. All spa towns in the South East, South West, West Midlands and Yorkshire and the Humber have an average house price above £200,000.
- Eight spa towns trade at a premium of more than 30 per cent to the average house price in their county and nine of these are located outside the south of England. Three are located in Yorkshire & the Humber (Boston Spa, Ilkley and Knaresborough), three in the East Midlands (Shearsby, Matlock and Woodhall Spa) with one each in the South West (Bath) and the South East (Tunbridge Wells). The premium is largest in Boston Spa (95 per cent) and Ilkley (88 per cent), both in West Yorkshire and Bath (38 per cent).
There are two spa towns which trade at a discount to the average house price in their county – Llandrindod Wells in Powys (7 per cent) and Epsom in Surrey (1 per cent).
House Price performance
- Five spa towns have seen a doubling of their average house price since June 2001. Two are in Wales with two in the East Midlands and one in Yorkshire & the Humber. 11 out of 18 spa towns have seen stronger price growth than the average for England and Wales of 74 per cent over the past five years.
Over the past year the best performing spa town was Llandrindod Wells in Powys, the most inexpensive spa town, with a 19 per cent increase in its average house price. This was followed by Knaresborough in North Yorkshire (14 per cent) and Buith Wells in Powys (14 per cent).
Quality of Life performance
- Harborough, the LA in which Shearsby is located, was ranked 31st in the 2006 Halifax quality of life survey. Epsom and Bath were the other spa towns ranked in the top 50. Nine spa towns were part of LAs which were ranked in the top 10 in their region.
- Employment rates are above the national average of 74.9 per cent in the LAs of 16 out of 18 spa towns. The highest employment rate is in the LA of Harborough (87.1 per cent), home of Shearsby.
- Owner occupation rates are above the national average of 70 per cent in 15 out of 18 spa towns. The highest rate is in LA of Harborough (84 per cent), home of Shearsby.
- Traffic levels are below average in 15 out of 18 spa towns. Lowest traffic levels are in Powys, home of Builth Wells and Lllandrindrod Wells.
- Houses are larger than the national average in 16 out of 18 spa towns. The average house has 5.3 rooms, In Malvern Hills the average house has 6.0 rooms.
Colin Kemp, managing director of Halifax Estate Agents, commented: "Spa towns are clearly popular with homes buyers with their house prices usually trading at a premium to nearby towns. The ten best performing spa towns since 2001 are all outside the south of England with Welsh spa towns seeing keen interest. The average house price in Builth Wells in Powys, the best performing spa town, has risen by nearly 150 per cent over the past five years."
