Average property prices in the UK exceeded £250,000 some time ago, but what exactly can you get for this kind of money in different corners of the country?

Unsurprisingly, the size and specification of property you can expect for your £250,000 differ greatly from one region to the next. With the stamp duty holiday having been extended until at least September 30, the next few months are expected to be particularly busy for the real estate market.

For those setting their sights on a property for around the £250,000 national average, this is what you are likely to find available in key areas of England:

North East

The average price for a three-bedroom house in the north-east of England is just over £152,000, which means that £250,000 would stretch to quite an impressive property. An attractive four-bedroom townhouse recently renovated and with pristine private gardens should be well within your price bracket in select areas of the North East.

North West

Similarly, the average market value of a three-bedroom home in the north-west of England is just under £200,000. If you are looking to spend £250,000, you could invest in a large and relatively newly built four-bedroom home with landscaped gardens, a separate dining room, and excellent transport connections. House prices are also up more than 7% in this region year-on-year, making it a great location to consider buying into.

Yorkshire and the Humber

With average prices hovering around £190,000, an investment of £250,000 in Yorkshire and the Humber could stretch to a beautiful rural property in a quiet and secluded corner of the county. Ideal for those looking to escape the chaos and congestion of busy urban centres for a more tranquil countryside lifestyle.

West Midlands

Homes rarely take much time to sell in the West Midlands, an average of 65 days, fuelled by consistent demand. £250,000 in an area where the average property values hover around £220,000 could easily stretch to a spacious three-bedroom semi in a desirable corner of the county with lush gardens and an expansive driveway for multiple cars.

East of England

Property prices in this region are currently averaging around £327,000, though there is plenty available for a £250,000 investment. Three-bedroom detached and semi-detached properties in and around Norwich in particular are proving popular among movers and investors alike.

South East

With the same average asking price of around £372,000, the second-most expensive region in England still has options available for a £250,000 investment. Terraced properties, in particular those with private gardens and two to three bedrooms, were in plentiful supply as of early 2021.

London

Lastly, £250,000 is still more than enough to invest in an attractive contemporary flat with two bedrooms and spacious living areas in several South London postcodes. Considering the average price of around £645,000 for a home in London, the fact that anything attractive is available for this kind of money is actually quite surprising.

We recently published a post examining what the average UK house price of £250,000 could be used to purchase in different parts of the country. With average property prices now exceeding £645,000, key London locations are largely out of reach for most movers and investors.

But there will always be the occasional exception to the role, as illustrated in a recent (and somewhat controversial) listing by Knight Frank estate agents.

Typically, you may find it impossible to believe that a flat in London overlooking Hyde Park would be available for just £150,000. You would understandably expect there to be plenty of strings attached, and you would be right.

What is £150,000 worth in Knightsbridge?

Home of the wealthy and super wealthy alike, Knightsbridge is not the kind of place you can usually buy into for just £150,000. This unusual exception listed by Knight Frank boasts one of the most prestigious postcodes in the entire country, with one major caveat:

It is listed as a “zero bedroom” flat.

Roughly translated, the flat in question measures just eight square metres in total and therefore does not qualify as having a bedroom. Interestingly, developers are prohibited under strict regulations from building any properties less than 37 square metres in size.

The Knightsbridge flat is therefore more than four times smaller than what is considered permissible by regulators as a dwelling to occupy for residential purposes.

Nevertheless, the flat is described by Knight Frank as a “blank canvas” for the lucky investor to do whatever they want with.

Causes for concern?

Approached to comment, a representative speaking on behalf of Knight Frank remained adamant that the tiny flat would make a good investment and has a great deal of potential.

“The minimum space standards are only relevant to planning permissions in London for new-build residential developments and converted properties constructed after 2011,” said the representative.

“The property at Princess Court on Brompton Road was originally leased in 1976 and has been used as residential accommodation prior to the minimum space standards coming into effect. Knight Frank can confirm that the property complies with all relevant regulations.”

However, others from within the industry and elsewhere expressed concern regarding the extent to which elevated prices are being charged for dwellings with no immediate practical value.

Labour’s Shadow Housing Secretary, Thangam Debbonaire, said that the Knight Frank listing does nothing but illustrate the wider issues with the local and national housing markets.

This outrageous advertisement is evidence of a broken housing market and shows why we need more truly affordable homes,” Elizabeth said.

For years, the UK has been blighted with the prospect of an entire generation being priced completely out of the property market. An issue in almost all areas of the country, prospective first-time buyers have found it increasingly difficult to qualify for mortgages with excessive initial deposit requirements.

This demographic has long been dubbed ‘generation rent’, an unfortunate reference to the likelihood of most within this group being forced to rent homes for a lifetime.

But this is something that could be set to change due to a series of new measures and reforms being introduced by the government. At least, according to Chancellor Rishi Sunak, who has boldly claimed that ‘generation rent’ will be transformed into ‘generation buy’.

Specifically, he believes that the extension of the stamp duty holiday and a new government incentive scheme that will guarantee 95% mortgages will make a real difference to first-time buyers.

He stated with confidence that the initial stamp duty holiday had “helped hundreds of thousands of people buy a home and supported the economy at a critical time”, suggesting that even greater numbers of buyers could benefit from the second instalment of the suspension.

Meanwhile, banks are to be offered government guarantees in return for reintroducing 95% LTV mortgages with a deposit requirement of just 5%. As the vast majority of struggling first-time buyers cite elevated deposit requirements as their main barriers to homeownership, this new initiative could make a real difference.

Speaking on behalf of NatWest Group, head of mortgages Lloyd Cochrane welcomed the government’s decision to encourage lenders to bring back 5% deposit mortgages.

“For those customers with smaller deposits looking for a mortgage, particularly younger or first-time buyers, saving up for a big deposit can often be difficult, and we know people in these groups are some of the hardest hit by the effects of the pandemic,” he said.

“A government-backed mortgage guarantee scheme will help segments of the market for whom homeownership has felt far out of reach in recent months.”

Likewise, Wilson’s tax consultant, Imogen Lea, said that the extension of the stamp duty holiday would help ensure those who may have missed out the first time around will have ample opportunity to make significant savings.

“The welcome three-month extension to the SDLT holiday gives potential property investors a second chance to purchase with no SDLT up to £500,000,” she said.

“The extension to properties valued at £250,000 or less, which will be introduced in July and run until September 30, could see more sustained growth in buy-to-let investments in parts of the country where property prices are lower or in smaller dwellings,” Imogen added, highlighting the potential benefit of the extension for BTL Property Investors.

However, critics have argued that the government’s efforts to improve access to the property market for first-time buyers do nothing to help renters and mortgage payers who have fallen into arrears due to the COVID-19 crisis.