15 Feb Successful Football Clubs vs Local Property Markets
Successful Football Clubs vs Local Property Markets
If your local football team is doing well how does this affect your local housing market? For instance, if they get promoted to the Premier League or maybe even win the League.
Well, that happened to Leicester City in 2016 they won the Premier League after only being promoted two years previous in 2014 after beating Sheffield Wednesday to clinch promotion. The year they won everyone jumped on the bandwagon to share in their success even including property market bloggers.
Tweets of congratulations were sent out by local estate agents social media went into a frenzy for this incredible achievement, House Shop released data of how house prices were affected. This showed that when the team is doing well then the house prices go up, but when the team is struggling, so does the housing market.
The study showed in 2014 when Leicester City was promoted that house prices saw an increase by 4.4% to £114,657, in 2015 they finished 14th in the league and prices rose by just 0.4%.
Since the famous League win prices have rocketed by 7.6% in the past year alone. Data from the Land Registry shows that an average property in Leicester in 2015 before the League win would cost you £118,240 and compared to now after their success the average price is £124,000.
Is this just by chance or is there a pattern? Let’s compare other Premier League clubs.
Is it enough for the team to win the league in order to get people to buy into the area?
We did some research to see how areas with Premier League winners perform off the pitch and in the housing market, we used data from the Land Registry.
Blackburn Rovers won the Premiership in 1995.
Data only goes back to 1995 for Balckburn area, in January 1995, the average house price was £48,281. Our research showed that by the end of that season the house price was slightly lower at £47,168.
A year after they romped to victory in the Premier League we noticed that the average house price had dropped again to £43,401 but sales had risen to 216 sales compared to the previous year of 185.
We decided to have a look when the team was relegated from the Premier League to see if this affected the area, this showed a fall in house prices of 4.6%
The average price today is £106,847.
In London it’s hard to see a rise due to a Premier League team winning because the area is so buoyant.
We had a look anyway, so the home of Arsenal is Islington when the Arsenal last won the league in 2004 property prices rose in that 12 months by 4.7% to £299,507.
A year later prices rose again by 2.9% and today the average price has skyrocketed to £722,018.
Well, Chelsea is one of the most prestigious places in London to live and the house prices here are astronomical.
Chelsea won the Premiership in 2005, the average house price had already gone up by 6% to £1.1 million.
This has been pretty static over the past year, similar to the football team’s performance, but the area is now seen as a sign of prices reaching their peak.
Both Manchester United and Manchester City have won the Premier League in recent years, they are still fighting for football dominance today.
The red side of Manchester has won it the most times, but the last time was in 2013, which actually saw house prices drop in Greater Manchester in that period by 1.7% to £101,456.
However, when Manchester City won the League in 2014, house prices rose in their area by 4.7% to 106,934.
A year later they were still rising, this time by 1.6% to £113,293.
This could be due to many factors, the blue side of Manchester has seen massive amounts of money pumped into regenerating the area, which has been marketed as building the Northern Powerhouse.
We have come to the conclusion that there are many factors which influence the housing market. To us, it looks like Leicesters housing market boom could just be a one-off, like their famous Premier League victory.