Housing Market: North-South Price Gap Rises

Housing prices in the North continue to fall

Housing prices in the North continue to fall

The average price of homes in the South of England is now twice as high as that of the North, a new study reports.

This is the first time that the gap between the housing prices in the North and South has risen to these levels.

Rises and Falls

Despite the widespread tales of economic doom, recent data shows that asking prices for homes around London, the South-East, South-West, and East Anglia rose 4.7% in the last month.

On average, a house in the South now costs £336,743, while the average Northern home is worth only £164,347 by comparison.

This gap of £172,396 is the largest gap recorded in the Rightmove pricing index, which has been running for 9 years.

Property prices were predicted to downslide by around 10% by 2013 because of the struggling economy, but Rightmove stated that houses around London in particular are exceeding property value expectations. The entirety of the Southern housing market has continuously performed better than predicted.

Credit crunch

In the four years since the dire financial crisis, housing asking prices have risen 5.4% in the South, but fallen by 9.6% in the North.

Though Northern homeowners may be disappointed in their property’s performance, a spokesperson from Rightmove said that the rise in asking prices indicate that there is some hope for a housing market recovery. Rightmove says that asking price rises indicate the very beginning of increasing demand, which is what the market needs to spur on a strong recovery.

However, Rightmove says that England is now facing a “two-tier” market as the gap between house prices in the North and South continues to widen.

The company suggests that the higher rates of unemployment in the North have made curtailed demand and may be responsible for driving prices down.

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