UK towns that have been designated for city status as part of the Queen’s Platinum Jubilee celebrations could see property prices rise by up to £37,000 over the next year, according to a report. Boomin’s study.
Boomin analyzed local house price data for the nine towns in Britain that had previously achieved city status in the Millennium Contest in 2000 and the Queen’s Golden and Diamond Jubilees in 2002 and 2012 .
Research shows that on average in these nine areas, house prices rose a respectable 12% in the year following their new city status.
Gained city status as part of Golden Jubilee celebrations, house prices in Newport soared 29% over the following year, with Preston also recording 26% growth, while house values Brighton properties jumped 19% in a single year following the Millenium competition.
So what might new found city status mean for the next batch of UK cities in terms of their local housing markets?
Boomin looked at the current purchase cost and what an average 12% increase would mean for homeowners in each city.
Milton Keynes may be due to see the biggest increase in property values after the Queen’s Platinum Jubilee. With the average house price currently at £315,173, an upgrade to the town’s status could add another £36,875.
House prices in Douglas on the Isle of Man could see a similar increase (£36,643), with house prices in Colchester also rising by just over £36,000.
An upgrade to the town’s status could help add more than £20,000 to the average property value in Wrexham (+£23,188) and Bangor (+£21,990), with Dunfermline (+£19,534) and Doncaster ( + £18,291) not far behind.
Michael Bruce, CEO and Founder of Boomin, says: “There is no doubt that city status will provide a great boost to those cities which will benefit from the Platinum Jubilee celebrations, as this added layer of prestige will certainly attract more business and investment which in turn , will help grow the local economy from the ground up.
“The ripple effect of this positive economic growth will certainly be greater demand for housing, thereby increasing the value of local properties. In fact, based on the market growth seen in previous cities to receive status of city owners like Milton Keynes could find themselves considerably better off in just 12 months.