Tuesday, 31 March 2015

Property values divide on verge of disappearing

The north south divide in house prices has shrunk to the stage where it has almost disappeared, a new report has claimed

The north south divide in house prices has shrunk to the stage where it has almost disappeared, a new report has claimed.


House prices in the north have been booming compared with relatively lacklustre performances in the south in the last couple of years, according to the research conducted by Savills.


It claimed that this has left housing markets in a state of relative equilibrium. Northern house prices are now less than 10 per cent cheaper than the average UK price compared with a 25 per cent difference five years ago.


'Other economic changes in regions mean that there are now parts of northern regions with housing markets that behave much more like those in the south,' the report added.


'Whole areas, such as the commuter belt south of Manchester, for example, have taken on characteristics - and prices - much more akin to their counterparts in the Home Counties.'


But the report did acknowledge that there were still swathes of the north with low house prices where people did not want to live.


Vince Taylor, director of implementation at the Northern Way, said its own analysis of the economic data backed up Savills' interpretation. 'London and the south east had something of an economic slow down three years ago,' he said.


'However, we are concerned that this is something that tends to happen in the UK economic cycle. Our concern in particular is that whatever gains the north has made in recent years, and it is currently growing faster in GDP terms than the rest of the country, aren't instantly lost in that upswing.'


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