Summary
Price per square metre helps buyers compare properties of different sizes. It is useful, but it should not be used alone because condition, layout, tenure, lease length and location can change value.
Definition
Price per square metre is calculated by dividing a property’s sale price by its internal floor area. It helps normalise comparables when one property is larger or smaller than another. For example, a £420,000 flat with 60 square metres has a price of £7,000 per square metre. Buyers can use this to scale comparable evidence to the target property’s size, but they should still adjust for layout quality, condition, outdoor space, parking, tenure, lease length, service charges and micro location. ONS price per square metre statistics can be useful as a reasonableness check, but the strongest evidence remains closely matched local sales.