Northern Property Prices Soar: Goodbye North/South Divide
Could it be true? Are we really saying goodbye to the famous North/South divide of the UK? Maybe not culturally or socially but according to this Guardian article, we could soon see the property gap growing smaller. It’s a well-known fact that property down South is simply more expensive. However, recent growth rates are starting to tell another story. Yes, it may take years to balance out such a prominent difference but we’re heading in the right direction. Here’s the lowdown on the story.
Why is the North/South property divide closing?
The stats themselves come from no other than Savills, the all-seeing eye when it comes to the property market. The estate agent experts expect the UK property market to grow by around 14% by 2023, which is a remarkable figure. But that’s not the most exciting part. According to Savills’ research, the strongest area of growth will be at the top end of the country – between Scotland, the North and the Midlands. In particular, we can expect to see the largest growth, in percentage terms, in the North West. And as a property company that resides in a North West county, that’s fantastic to hear. On the other hand, the London market will see less exciting advancements. There’s going to be a slight fall over the next year in house prices.
However, it’s much needed after such an intense growth period. Savills note that “72 per cent over the past 10 years” was “well ahead” the rest of the UK. Of course, we know this all too well. The main reason for the sudden halt in growth is mostly speculated to be due to Brexit unrest. Fortunately, this presumed uncertainty doesn’t seem to be affecting the North too much. Great news for us! In conclusion, this shift in the market is going to give us a chance to close the North/South property gap over the next five years or so.
Let’s see some more numbers
When it comes to figures, there’s been plenty of research carried out. After all, the property market is so volatile and interesting that’s it’s constantly being analysed and researched. The Guardian reported that the 14% growth of the UK property market, in real terms, is equivalent to around £32,000 extra on top of the average house price. This will take us from the current £216,000 to £248,086. Focusing on the North West, we’ll see the average house price go from £197,451 to around £240,100 (using average figures from Zoopla). That’s if Savills’ North West growth prediction is correct. So, as we can clearly see, the North West average will soon creep up to almost the average house across the entire UK. And it’s looking positive, Zoopla has shown a 2.57% increase in North West properties over the last 12 months so far – a real-feel figure of £4,952. If that’s not closing the property divide, we don’t know what is!
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