Saturday, 30 May 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.'


Newsletter Sign-up



  • Social divide

    3 April 2015

    The subject of ‘poor doors’ has polarised sector opinion, says Matthew Taylor

  • Property giants report hikes in revenue

    25 February 2015

    Contracting giant Kier has reported an 11% rise in revenue in the six months to the end of last year from the year before, in its interim results released today.

  • JLL acquires property consultancy

    6 January 2015

    JLL has acquired the property consultancy arm of a rival business and poached the head valuer from another as it increases its share of the market.

  • 'Homelessness vulnerability test creating "north-south" divide'

    17 December 2014

    A commonly-used test to assess the vulnerability of homeless people is ‘absurdly harsh’ and is creating a ‘north-south’ divide in terms of housing decisions, charities argued this week in the Supreme Court.

  • The private rented sector divide

    23 October 2014

    Northern social landlords are starting to eye the private rented sector, but at the same time other social landlords are cancelling their PRS plans. Pete Apps investigates what this means for the sector

IH Subscription