It’s a goal! Can a winning football team really help local property prices?

Leicester City football club will officially be crowned Premiership champions this weekend and everyone has been jumping on the bandwagon to share in their success, including property market commentators.

Many Leicester-based agents sent out tweets of congratulations and property portal the House Shop released data showing house prices in the city have gone up when the team has done well, but down when it hasn’t

For example, when they were promoted to the Premiership in 2014, according to the House Shop average prices increased that year by 4.4% to £114,657. They finished 14th in the league in 2015 and prices rose just 0.4%

But property prices in Leicester have jumped 7.6% in the past year as they climbed to Premiership success.

Land Registry date shows that an average property in the city would cost £118.240 at the end of the last football season, now it is closer to £124,000, according to the Land Registry.

So how does this compare to Premiership winners of the past?

Is a Premier League win enough for a local team to bring people to an area to buy?

We checked the Land Registry to see how areas hosting Premier League winners have scored in the past.

Blackburn

Blackburn Rovers won the Premiership in 1995.

Land Registry data only goes back to January 1995 for the Blackburn with Darwen area but in January 1995, the average property in Blackburn cost £348,281. By the end of the football season in May 1995 it was actually slightly lower at £47,168.

A year after their win in May 1996 prices had fallen £8 % to £43,401 , but sales were still positive at 216 compared with 185 a year earlier.

There were 248 transactions in June 1995 just after the win.

Interestingly, when they were relegated in 2012, average prices fell 4.6 % year on year to £103,636

The average price today is £106,847.

Arsenal

The average price in Arsenal’s home town of Islington when the Gunners last won the league in May 2004 had risen over the previous 12 months by 4.7% to £299,507.

A year later it had increased by 2.9% to £308,191 and now the average price has skyrocketed to £722,018.

There are obviously plenty of reasons for property price rises in London.

Chelsea

Chelsea won the Premiership in 2005. By then in May the average price had already gone up 6% to £1.3million.

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.

Manchester

Both the red and blue part of Manchester have in the past fought it out to be Premiership Champions.

Manchester United may have won it more times, but the last time they did so in 2013, prices in Greater Manchester actually fell in that period by 1.7% to £101,565.

When Manchester City last won the league in 2014, prices rose in the 12 months to May 2014 by 4.7 per cent to £106,293.

A year later it had risen slightly to £108.609 and now the average price in Greater Manchester is £113,292.

Could this be due to the blue part of Manchester coming from underdog status to a successful team. Or could it be due to new investment in the region as part of the building of the Northern Powerhouse.

There are obviously many factors that will influence property prices. So it looks like Leicester’s property price boom, like their Premiership win, may just be a one-off.

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