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The price gap between the North and South of England now more than £150k

Homes in the South of England are now worth over £150,000 more on average than houses in the North according to new research.

UK Property Divide

Homes in the South of England are now worth over £150,000 more on average than houses in the North according to new research.

The difference in the rate of growth has brought the North/South property divide to a new record high following the exponential growth of the South, where market value has been consistently growing faster than the North for the past 6 years.

The latest monthly index from Nationwide Building Society, found that houses throughout the South West, South East, East Anglia, London and the commuter belt have increased in value by 8% annually.

Conversely, growth in the North and the Midlands has been at a much slower rate, an average increase of just 1% over the same period.

A spokesman for Nationwide said: “In cash terms, the gap in average prices between the South and the North of England is at a record high, exceeding £150,000 for the first time, with average prices in the South now twice as high as those in the North.”

The value of London property continues to accelerate beyond the rest of the UK with annual growth of 10.6% - an average house price of £443,399. Conversely, the typical price for a house in the North of England is £123,345 – more than three and half times less than the cost of the average London property.

Whilst there has been continued growth in the housing market, the report also stressed that rate at which house prices have increased has slowed. According to Nationwide, UK property prices have grown by 0.5% over the course of September, adding to a year-on-year increase of 3.8% from September 2014.

Update: Following the announcement of increased Stamp Duty charges in the 2015 Autumn Statement, the North/South divide in house prices is likely to be more important in the development of the UK housing market in the coming months.

The Chancellor George Osborne has announced that buy-to-let purchasers will be accountable for an additional 3% Stamp Duty charge from the beginning of April in 2016. Using the average house prices listed above, the Stamp Duty difference will affect buy-to-let purchases as follows:

North South Property Price Divide

This means that projects such as Grattan House, which sits below the new threshold, as well as Leighton Hall and Studio 8 at Regent House, which is within the lowest bracket of Stamp Duty charges will act as an alternative to more expensive developments in the South.

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