Greater property price difference between the North and the South
Property prices around the UK can vary widely from one area to another, and according to a recent report the difference between property prices in the North and the South of England is wider than ever, with affordability in the south becoming more and more difficult. Figures suggest that the gap between properties between the two parts of England has widened by around £15,000. In fact, the figures suggest that a property in the south could cost around £90,000 more than a similar property in the North of England.
There are now concerns that many areas on the south of the country could be hard hit as a result of the high price of property, as it means that even if demand is high affordability is getting lower and lower. According to one industry professional: ‘Very poor affordability conditions, along with turmoil in financial markets which have cast doubt on bonus and employment prospects in the City, mean that London’s housing market will continue to weaken. But with supply constraints in the capital unlikely to go away quickly and with employment required for the Olympics development, there will continue to be some supporting factors for London’s house prices.’
The gap between house prices in the North and the South of England has been growing since around 2004 according to industry professionals. London, Outer Metropolitan and the South East are amongst the areas with the highest priced properties, and North West, Yorkshire and Humberside and the East Midlands have been identified as having the lowest priced properties. House price inflation in the South has been around three times faster than in the North according to industry professionals, with annual inflation of 9% in the South compared to 3.4% in the North.
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