How do UK house prices vary from region to region?
There has long been talk of a North – South divide, with house prices in the UK used as a yard stick as to how much of a gulf exists between the two areas of the country. In the aftermath of the recession and in the midst of a difficult time for the UK property market, looking at house prices UK in terms of differences between the regions is a useful exercise for those keen to make their house deposit go further.
Just as you’d shop around when considering buying a new car or electrical appliance to be sure you’re getting the best deal, looking at UK house prices on a per region basis and comparing average prices for similar standards of property could lead to substantial savings for those flexible about where they choose to buy a house.
Capital cities are always more expensive points of purchase and this is truer than ever for London. While year on year, house prices UK have fallen by 2.6% (as per data from lender and bank, Halifax), house prices in and around London are soaring. The Land Registry, which tracks house prices UK on a monthly basis, says prices are rising by 1.8% a month in the capital (compared with month on month declines elsewhere). Some analysts suggest a home owner looking at a house in the north and considering a house in the south would pay around 300% more for the London house.
According to The Land Registry’s August data, an average London property is priced around £346,416, compared with just £101,143 for a typical house in the north. These average figures don’t necessarily paint the full picture of house prices UK at the present time though, as some regions in the north have been harder hit than others. In June of this year for example, house prices in the North East were found to have declined 8.8% year on year. Yorkshire and the Humber has also been hard hit, with a 4.5% year on year decline. For the same time frame, house prices in Wales declined 3.3%, while in the North West it was 3.3%. The East Midlands showed a 3.2% year on year drop.
Rating’s agency Standard and Poor’s have also revealed results of their research into 1.3 million mortgages, stating that homeowners in the north are 35% more likely to be at least one month in arrears on their mortgage repayments. What’s more, this figure is a 10% increase on last year’s research, while the number of home loan in arrears on London actually fell in the same period, showing that the gulf between North and South is still developing.