Home buyers across Britain are getting 41 per cent less space for their money than they did a decade ago, according to new analysis. Since 2016, buyers have lost the equivalent of 70 square metres of property for every £300,000 spent, based on Land Registry, Rightmove and energy performance certificate data analysed by Post Office Life Insurance.
The amount of space lost per £300,000 spent is roughly equivalent in size to a two-bedroom bungalow, the analysis found. How much space buyers have lost depends heavily on where they live.
Manchester sees the biggest squeeze
Manchester recorded the steepest decline of any area studied, with buyers now getting 58 per cent less space for their money than in 2016. With average house prices in England now close to £300,000, that budget bought nearly 200 square metres of property in Manchester a decade ago. Today the same money buys an average of just 84 square metres, a loss of 114 square metres.
Birmingham and Leeds also hit hard
Birmingham buyers have also suffered, losing 93 square metres of space for a £300,000 budget over the same period. A decade ago that sum bought 189 square metres of property in the city; today it buys 96 square metres. Post Office said average annual salaries in Birmingham stood at £30,180.
Leeds was the third worst-affected location in England, with buyers losing 84 square metres of space for the same budget. In 2016, £300,000 bought 174 square metres of property in the city, compared with 90 square metres now.
Liverpool and Doncaster also affected
In Liverpool, where Post Office said the average annual salary was £30,947, a £300,000 budget bought 240 square metres of property in 2016, compared with 126 square metres this year.
Buyers in Doncaster, where Post Office said average annual earnings were £31,119, have also felt the squeeze. A £300,000 budget bought 255 square metres of space in the city in 2016; by 2026 that had fallen to 138 square metres.
London barely affected
London, despite its reputation, has seen some of the smallest changes in floorspace per pound spent over the same period. Inner London has recorded a fall of just 0.01 square metres per £1,000 spent since 2016, while outer London is down 0.04 square metres, according to Post Office.
Across Britain, buyers now typically get 0.33 square metres of property for every £1,000 spent, the company said.
A Post Office spokesperson said: "What's striking is how much physical space people have lost without realising it. In cities that were once seen as affordable, buyers are now paying far more for far less, which puts added pressure on household finances."
Minimum space standards for new homes
The squeeze comes despite national space standards for new-build homes that were set by the government in 2015. Studio flats built on a single storey must have a minimum gross internal area of 39 square metres if they include a bathroom, or 37 square metres with a shower room, plus at least one square metre of built-in storage.
One-bedroom, two-person flats must measure at least 50 square metres over a single storey, or 58 square metres over two storeys, with at least 1.5 square metres of built-in storage. Two-bedroom flats need a footprint of at least 61 square metres to accommodate three bedspaces, or 70 square metres for four bedspaces.
Despite these requirements, British households live in some of the most cramped conditions in Europe.
