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Homes in the South Now Nearly Twice as Expensive as Northern Properties

On average, house prices in the South of England are £163,000 higher than those for properties in the North, a record high, according to a new report.

On average, house prices in the South of England are £163,000 higher than those for properties in the North, a record high, according to a new report.

Nationwide’s newest figures show the disparity in the UK’s property market between the North and the South is accelerating. House prices in the South rose by 9.9% on average in the year to March, whilst the increase in Northern England was just 1.1% over the same period.


The report found that the average house price in the North now stands at £123,864, whilst the average value of a property in the South East of England is £255,325 and £221,703 in the South West.


The average house price in the UK has risen above £200,000 for the first time, standing at £200,051 and placing the average northern property value at £76,187 below the national average.


Across the first quarter of 2016, the market saw a significant increase in house prices throughout the UK as property investors and landlords rushed to beat the Stamp Duty deadline. House prices rose by 4.8% year-on-year in February, but this figure rose to 5.7% in March according to Nationwide.


Earlier this year, running concurrently with price increases, rental rates in the UK were recorded at their highest since November 2014. In January, landlords were achieving a 12% return on their buy-to-let investments when factoring in both capital appreciation on the property price and their rental returns.


Chief economist at Nationwide, Robert Gardner, said that the pace at which house prices are rising in the UK is likely to stabilise in the second quarter of 2016 following the implementation of the new Stamp Duty levy on April 1st.


Last month, property listings website Rightmove, who use a different metric to Nationwide, reported that the average UK property asking price has risen to a new record high of £303,190, citing the increased market activity from property investors as the main cause for the increase.

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