The average house price in the South of England has now risen to more than twice the price of those that are in the North, a study has revealed. It is thought that the divide between the North and South is widening at an ever increasing rate. House prices across the country are forever fluctuating, but what seems to be commonplace is that houses that are in the North of England do cost a lot less than any situated in the South of England.
The average property in the South costs anywhere between £350,000 to £450,000 whereas the North sees houses cost between £150,000 and £350,000. The price gap has grown to one of the largest that has been recorded by RightMove.
Property prices and the North to South gap had been predicted to fall. But the price rise in the South of England, especially in London and the surrounding suburbs, continue to rise and exceed expectations. Since 2013, asking prices in the South have risen by as much as 5.5% and asking prices in the North have fallen by as much as 10%.
A spokesman from RightMove, Miles Shipside, stated that: ‘Wider access to mortgages and rising asking prices are early signs of increasing demand, giving homeowners some grounds for hope of a market recovery.’ He continued to suggest that there was a, ‘two-tier’ market with a ‘growing price gap.” A report that was released has suggested that the falling house prices may be due to the higher rate of unemployment in the North compared to the South.
The ONS have found that house prices are increasingly showing very positive signs across the United Kingdom. Values in London have shown the highest annual growth, increasing by as much as 20% per annum. There has been an overwhelming exodus from the capital though, as people have started to feel the strain of the ever growing inflation. People are growing increasingly frustrated about having to move further out of the city to be able to afford a house. The issue that occurs by moving further out is the increased commuter costs.
“A north/south divide in the field remains evident in the race back from the debris of the financial crash," claims David Newnes, the director of Reeds Rains and Your Move estate agents. He continues to describe how: "For six regions of the UK, average property prices achieved on completion are yet to match their pre-crisis score. The north has the furthest ground to travel, with average prices still 8.3pc (or £13,400) below their housing boom high in March 2008. The path of the London property scene is best plotted on a different scale to the rest of the country."